Speaking at the annual Lord Mayor’s Banquet at Mansion House in London, Osborne said the move would let developers build on almost all brownfield land.

The new reforms will force councils to put in place pre-approved planning permissions on brownfield sites that are suitable for housing.

“Local authorities will apply local development orders onto sites and we expect over 90% of suitable brownfield land to be covered by 2020,” he said.

“This urban planning revolution will mean that in effect development on these sites will be pre-approved – local authorities will be able to specify the type of housing, not whether there is housing.

“And it will mean planning permission for up to 200,000 new homes – while at the same time protecting our green space.

“This approach will allow developers to get building sooner, saving them time and money,” said the Chancellor.

He said the government would also allow developers to apply directly to central government where councils have not done enough to remove planning obstacles on brownfield sites.

The Treasury will create a £5m fund to help local authorities create the first 100 sites with LDOs.

Today, the Chancellor and Mayor of London Boris Johnson will also announce a series of 20 “housing zones” around the capital for 50,000 homes.

The Mayor will be granted extra powers to strip back planning restrictions in the areas which will be backed by new infrastructure.

Five areas in the capital are already earmarked in Enfield, Tower Hamlets, Ealing, Haringey and Wandsworth, with a £400m pot from the Treasury and Greater London Authority to assist building.

The Chancellor also announced he would give further powers to the Bank of England to curb riskier mortgages.

He added: “Now I suspect there will be people who object to new building, even on the brownfields of our cities.

“But let me be clear. I will not stand by and allow this generation, many of whom have been fortunate enough to own their own home, to say to the next generation: we’re pulling up the property ladder behind us.

“So we will build the houses Britain needs so that more families can have the economic security that comes with home ownership.”