Developers could get automatic planning permission to build on disused industrial sites in England. Ministers would also get powers to seize disused land, while major housing projects could be fast-tracked, and rules on extensions in London relaxed.

Business Secretary Sajid Javid unveiled the plans as part of a broader push to boost Britain’s productivity. It came as official figures showed new house building fell by 5.8% in May, the sharpest decline in nearly four years.

Steve Errington, chief executive at Story Homes, said of the planning proposals: “We welcome the government proposals to grant automatic planning permission on brownfield sites. These moves will undoubtedly help developers who are looking to build on brownfield sites to get schemes built quickly and to help customers into their new homes.

“Proposals to speed up the planning process across the board are also welcomed as this will stop costly delays for developers. Homebuilders have the will to build but developments are often held up or cancelled because of planning issues.”

However, Errington added: “Although unlocking brownfield land is a very positive move, the shortfall of new housing supply will not be fulfilled with brownfield land alone.”