The Right to Build initiative aims to provide small numbers of affordable homes in rural areas where high house prices are driving people away.

Under the plan villages would be able to form local housing trusts, and hold a referendum to decide if house building should go ahead.

Housing minister Grant Shapps envisages small developments of fewer than 20 homes.

Shapps said: “Loads of people in village communities are saying, ‘Our school’s closing, our post offices are under threat, we’re losing our community facilities.’

“Our problem is that the young people grow up and find they can’t afford to live in this village anymore.

“We believe that people have a right to stay in their community and if people want to build that community to make it a bit bigger and expand it a bit, within reason, they should have the powers to do that.”