The economic downturn has led to a decrease in the number of property companies building new houses, factories and offices even when they have gained planning permission.
Permits that are not used expire automatically after three years. However, housing and planning minister John Healey, said that permits could now be extended for another three years through a simpler, cheaper process
The changes won't allow a developer to change what they are building and only apply to large developments which are above 10 homes or 1,000 square metres of commercial space.
'We recognise development is difficult during the downturn, so we need to do what we can to cut out unnecessary bureaucracy and keep developments warm and keep plans on the table,' Healey said.
The move has been warmly welcomed by the property industry. British Property Federation president Francis Salway, and chief executive of Land Securities, the country's biggest developer, said it would give developers more flexibility in difficult times.
'This is one of the measures needed to allow the industry to keep regeneration schemes alive. Many developers will have land ready to develop without the means to finance work immediately,' he explained.
Healey also announced changes for developers to build to greener standards, making homes cheaper to heat and run. He launched a consultation on changes to the Building Regulations to deliver the first step towards zero carbon buildings and carbon savings of over three million tonnes a year from 2020.
Other planning measures are to be simplified as well. This includes giving local authorities the freedom to make changes to large developments and town centres.
