The first sites chosen for the homes are in Docklands and Earls Court. Councils are being urged to find land, such as disused industrial sites, where the homes can be erected.
LiveIn Quarters hope 2,000
homes will be in use within three years, which will be allocated through a ballot of low-paid public sector workers who apply.
Lord Rothermere also visited a full-sized replica of the Cotswold cottage being given away in the Daily Mail's Ultimate Makeover Home competition.
There, he chatted with Carol Smillie - who officially opened the show - and revealed that he is a fan of her TV show Changing Rooms.
'I like doing DIY, but my wife isn't always a fan of the results,' he joked.
After touring the highlights of the show, which runs at Earls Court Exhibition Centre until April 1, Lord Rothermere said: 'Homes are about our dreams and lifestyles and what we hope for ourselves, and the show reflects that with some wonderfully creative designs.
'There are gardens at the show for the first time, including a garden which uses recycled materials such as crushed CDs.
'People often don't make use of their gardens, particularly in cities, but this shows how we can bring the garden into the home.' The theme of the show's centrepiece, the Showhouse Village, is A Celebration of Village Life.
It includes a 50ft medieval tower given an ultra-modern makeover by Justin Ryan and Colin McAllister of BBC's Real Rooms and Linda Barker of Changing Rooms, a barn conversion, thatched cottage and two other homes, including the Daily Mail's Ultimate Makeover Home in association with Courts.
The official charity of the Daily Mail Ideal Home Show is Cancer Research UK, formed last month by the amalgamation of the Cancer Research Campaign and the Imperial Cancer Research Fund.
Daily Mail Ideal Home Show patron The Viscountess Rothermere is a member of the national event committee of Cancer Research UK.
National event committee chairman Penny Wood said: 'We're hoping the Daily Mail Ideal Home Show will give our charity a massive boost.'
Instant-win scratchcards, daily collections and a prize draw for a Land Rover Freelander aim to raise at least £100,000 over the show's three weeks.
When it is on?
The show, at Earls Court Exhibition Centre, West London, opens today and runs until April 1. Doors open from 10am until 8pm except Thursdays, when the show is open until 10pm.
What it costs
Weekday admission is £10.50 for adults and £7 for children and senior citizens (£12.50 and £8 at weekends). Under 5s go free. Family tickets for two adults and up to three children cost £35 on weekdays and £41 at weekends. Pre-book and receive a £2 discount on adult tickets (£1 concessions, £6 family). Call 0870 606 6080 quoting reference DM1. A 75p booking fee applies per transaction.
How to get there
TUBE: Earls Court station on the District Line. BUSES: The 328, 74, C1 and C3 stop outside.
Where to park
Limited parking in Seagrave Road. Places can be booked on 0800 0568444 seven days in advance. Car parks also in Warwick Road.
