The councils mainly in London and parts of the south east will be able to opt out of reforms to change of building use to promote regeneration.

Communities secretary Eric Pickles said the legislation to amend the Town and Country Planning Act gave a clear signal to owners, developers and local planning authorities that the Government wants underused and outdated offices to be brought back to life to create much needed new homes.

New permitted development rights will also allow change of use to encourage plans for free schools.

Pickles added that the Government had recognised that there may be exceptional economic circumstances which would justify exemptions.

These exemptions will apply in the City of London and the London boroughs of Camden, Islington, Hackney, Tower Hamlets, Southwark, Lambeth, Wandsworth, Westminster, Newham, and Kensington and Chelsea.

These could prove a serious bloc to several high profile plans in West London under the control of Westminster Council.

Other areas are in the borough councils of Vale of the White Horse, Stevenage, Ashford (Kent), the district councils of Sevenoaks and East Hampshire, and Manchester City Council.

Communities Secretary Eric Pickles said: “There is huge untapped potential in the many disused existing buildings we have and we’re determined that every one of them is put to good use.

“These reforms will provide a boost to the exciting free schools programme. It will make it easier for parents and community activists to convert buildings into new schools.

“We’re also providing a great opportunity for outdated, redundant or underused offices to be brought back to life by converting them into homes, protecting the green belt and countryside at the same time. This will also increase footfall and provide knock-on benefits to the wider community.