Secretary of State for Housing, Communities and Local Government, Sajid Javid, said the government will make planning guidance more flexible in order to help fix the broken housing market and boost supply of housing stock.

The move could also ease pressure on the green belt if it becomes easier to build upwards in towns and cities.

Homeowners would still need planning permission to build two extra storeys under the proposals, but guidance to local authorities is likely to be changed, so they are encouraged to approve such applications.

Mark Hayward, chief executive of NAEA Propertymark, said he welcomed any move to create housing stock. “The market is in crisis with a severe lack of available properties, which is pushing prices up and pricing first-time-buyers (FTBs) out of the market.

“The fact that this will enable existing residential areas throughout the UK to expand is especially welcome, as it should increase stock in the areas which most need it, rather than being confined to more expensive urban areas.”

Paresh Raja, CEO of Market Financial Solutions (MFS), added that landlords and property developers could also take advantage of the more relaxed guidance, creating more rented accommodation, and benefitting tenants.

“In this sense, recent reforms to housing planning rules are a definite step in the right direction, and I believe this will have positive ramifications,” he said.

“Buy-to-let landlords can now consider adding additional storeys to their property, increasing the number of rental spaces on offer. At the same time, property developers can also look to build a further two storeys on existing developments, increasing the number of houses available on the market.

“Ultimately, this type of reform will only contribute to housing supply and will help alleviate current market demand.”