Under the proposed reforms, local authorities will compete to process planning submission and offer 'fast track' services, such as those available to receive a new passport.
The shake up aims to tackle a lack of incentive from councils to improve their planning service, which in the past has led to 'drawn out applications and local frustration' for both house builders and applicants.
The new rules will give applicants the choice of whether to submit plans to the local council, a competing council or a government approved organisation that would process applications up until the decision point.
In addition, councils also be able to offer the fast track planning application service – either through competition pilots or potentially through devolution deals.
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Decision making on the applications would remain the the local council to ensure decisions are taken locally while maintaining a link between local people and decision makers.
Communities Secretary Greg Clark said the new proposals will provide a boost for house builders.
"Council planning departments play a vital role in getting local housebuilding off the ground, but for too long they have had no incentive to get things done quickly or better, resulting in drawn out applications and local frustration," he said.
"These proposals will be a boost for housebuilders looking to build much needed new homes for hard working families and first time buyers, and for local people looking to get a planning permission for home improvements through their local council quicker."
The announcement was welcomed by many industry figures, including Chief Executive of the Federation of Master Builders, Brian Berry.
"The slow processing of planning applications remains one of the greatest barriers to building more new homes," he said.
"We welcome the government's determination to find new and innovative ways of addressing this problem as it could help builders deliver more homes.
"Indeed, if we are to see a resurgence in SME house building, councils will be met with a greater number of planning applications for small developments and this will put further strain on their resources.
"These trial measures have the ability to help fast track an all-too-often sclerotic planning process and unleash the potential of the local developer."
The new planning rules were released for consultation yesterday, 18 February.
Further details on how the pilots will run will be published after the consultation is closed.
(LM/MH)
