Director-General John Cridland said the CBI is "particularly pleased" its call to focus on the short-term boost of housing made it into the Chancellor's Budget statement.
Mr Cridland said the housing boost alongside an increase in big ticket infrastructure spending was "recognition it was a mistake to cut capital spending so sharply and that other growth-boosting measures were taking too long".
“Small and medium-sized businesses will be particularly encouraged that there was money available for the Chancellor to cut the jobs tax through a new employment allowance", he added.
George Osborne faces criticism that his mortgage guarantee plan might actually make houses less affordable.
The Treasury has still not explicitly said it will prevent homeowners from using taxpayer-backed Mortgage Guarantees to buy second homes.
It opens up the possibility of buying a house to millions who don't have a deposit but they might have to pay more for the privilege.