The insurance giant wants to pump more of its pension fund money into housing schemes.

L&G’s Chief Executive Nigel Wilson told the Sunday Times: “If we can bring communities with us and agree planning, we’d like to help build several new towns across the country.

“We’re already developing towns within cities, in partnership with enlightened local authorities and boroughs.”

Communities Secretary Eric Pickles also told Sky News: “I think we could maybe produce a garden city or two providing it’s in places that people want it and there are authorities expressing an interest”.