Chancellor George Osbourne has announced developers will automatically be given permission to build on suitable disused land.

The decision is part of a major reform to boost housebuilding.

New powers would be made available to seize disused land, while major housing projects could be fast-tracked with rules on extensions in London relaxed.

The measures are part of the Chancellor's Fixing the Foundations package.

Mr Osbourne said the plans would help tackle the housing shortage and make Britain more prosperous.

The Chancellor said: "Britain has been incapable of building enough homes. The reforms we made to the planning system in the last parliament have started to improve the situation: planning permissions and housing starts are at a seven-year high.

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"But we need to go further and I am not prepared to stand by when people who want to get on the housing ladder can't do so.

"We'll keep on protecting the green belt, but these latest planning reforms are a vital part of a comprehensive plan to confront the challenge of our lifetime and raise productivity and living standards."

The British Property Foundation (BPF) has praised the announcement.

The organisation stated the decision has the potential to be an 'enormous boon' to housing supply.

However, it also warned that some of the new measures will only work if the government addresses the severe shortage of funds within local authority planning departments.

It also outlined concerns that with its focus on Right to Buy and Starter Homes, the government is overly concerned with providing homes for owner-occupation.

Melanie Leech, Chief Executive of the BPF, said: "The raft of planning announcements today really hit the nail on the head for a number of planning issues.

"We are particularly pleased to see a commitment to bring forward brownfield land for redevelopment and also the focus on Local Plans, as the absence of such is a real block to local growth."

(LM)