In her speech to the Conservative Party conference yesterday, in which she vowed to create "a society that works for everyone", May said that it was "not right that the housing market continues to fail working people".
"Ask almost any question about social fairness or problems with our economy, and the answer so often comes back to housing", she said.
The Prime Minister said it was "an honest truth" that "we simply need to build more homes".
She said: "This means using the power of government to step in and repair the dysfunctional housing market. It means using public sector land for more and faster house building. It means encouraging new technologies that will help us to get more houses built faster. And putting in more government investment too. It means stepping up and doing what’s right for Britain."
May also said that her government would "take big, sometimes even controversial, decisions about our country’s infrastructure".
She said the government would "press ahead with plans for High Speed 2, linking London and Birmingham and, eventually, towns and cities in the North" and would "shortly announce a decision on expanding Britain’s airport capacity".
"We will take the big decisions when they’re the right decisions for Britain. Because that’s what government can do", she said.
May’s words echo those of communities secretary Sajid Javid, who earlier this week said that the Conservative Party was "willing to take difficult decisions, make the hard calls" in order to boost housing development.