The government had previously announced the plan for starter homes to be built across much of the UK. These properties will not meet all housing standards and will be sold for less than standard properties.
Under changes to existing planning rules, rural communities will now also be able to build such properties for people already living in the local area.
The plans were announced by Chancellor of the Exchequer, George Osborne, and environment secretary Elizabeth Truss.
The change to planning laws will now allow councils to allocate more sites for starter homes, as long as they are sold to local residents, those who have existing family connections or work commitments in the area.
Osborne said this and the other changes planned would help rebalance the economy
“For too long the British economy has been reliant on businesses based in our cities and towns. We want to create a One Nation economy that taps into the potential of all parts of our country,” he said.
“That means setting the right conditions for rural communities and businesses to thrive, investing in education and skills, improving rural infrastructure, and allowing rural villages to thrive and grow.”
Communities Secretary Greg Clark added: “We’re determined to ensure anyone who works hard and aspires to own their own home has the opportunity to do so – whether they live in cities, towns or rural communities.
“But all too often young people find themselves exiled from the place they grew up as they are forced to move away to find a home of their own.
“That’s why we’re putting power directly in the hands of rural councils to give the go-ahead for new starter homes in their area so local young first-time buyers can continue to be a vital part of their communities.”