The government plans to create a new generation of town houses by making it easier to develop existing buildings.
Housing Secretary Sajid Javid says the changes will ease pressure on valuable open spaces and help growing families who live in built up areas.
Under the changes it will be easier to build upwards on existing blocks of flats and houses, as well as shops and offices.
This will help councils protect open spaces in inner cities from development and maintain the character of residential areas.
Mr Javid said: “The answer to building new homes isn’t always an empty plot or developing on a derelict site. We need to be more creative and make more effective use of the space we already have available.
“That’s why we are looking to strengthen planning rules to encourage developers to be more innovative and look at opportunities to build upwards where possible when delivering the homes the country needs.”
This plan will be put to public consultation and is part of the National Planning Policy Framework.
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