England's most beautiful villages could be opened up for new housing to prevent city-dwellers driving out locals.

A new report commissioned by the government will call for the relaxation of planning laws to help locals get on the housing ladder and will warn that many villages are being “overprotected” from development.

The long-awaited study, commissioned by Gordon Brown, will say that the country’s most sought-after villages are becoming exclusive enclaves for wealthy commuters and the retired. Allowing well-designed, affordable new homes to be built is the only way to keep these villages alive, the report says.

It also calls for a new approach to house-building around England’s historic market towns – warning that many are being ruined by sprawling suburban estates.

The possibility of a relaxation of planning laws in and around England’s most picturesque villages has alarmed some pressure groups, who fear it could destroy the charm of the localities.

The prime minister ordered the study last year after announcing plans for 3m new homes. The findings, by Matthew Taylor, a Liberal Democrat MP, will be published later this month, and will say that people born in popular rural areas face a particular struggle to get on the property ladder, because of an influx of well-off families moving to the countryside from the city, and second-home owners, who have driven up prices.

Areas where second homes account for a significant proportion of the housing stock include the Cotswolds, the Lake District, north Norfolk and parts of the southwest.

Many rural councils ban new housing in the most sought-after areas, particularly in conservation villages. Some have a blanket ban for certain categories of village, such as those in areas of outstanding natural beauty or those which do not have schools.

The report claims such tight planning restrictions are sapping the life out of some rural areas, leading to a haemorrhaging of local jobs and services.

Taylor emphasises that he is not advocating a “free-for-all” for developments in beauty spots. However, he argues that “overzealous or ill-thought-through” restriction of development in rural areas is backfiring by holding back local economies and pushing property prices out of the reach of local buyers.

The report concludes local authorities must allow limited new housing in hitherto protected villages if there is demand from the community.

Under Taylor’s plans, the new properties would be available only to those who can prove they have a local connection, either through relatives or their work, and would be capped in price indefinitely, protecting them from the effects of a property boom.

“A lot of people who live and work in these villages are simply being priced out,” said a source close to the study. “What we are saying is that councils shouldn’t simply rule out new builds because a village falls into a certain category. They need to take it case by case.”

Taylor’s findings are likely to be seized on by Caroline Flint, the housing minister, who is determined to push through a massive expansion of low-cost housing, including some built on open countryside.

The Campaign to Protect Rural England warned, however, that developers must not be allowed to “trash” the countryside.

Marina Pacheco, its head of planning, said: “Any new developments must be sympathetic to existing homes. We would hate to see a red-brick home built ina stone-dominated village.”

The report will say that pressure on housing in villages is being exacerbated by the ill-thought-out expansion of market towns. Some are becoming so ugly and congested that residents are fleeing to the country side in search of more attractive surroundings, it says.

It accuses local authorities of defacing once beautiful towns with swathes of characterless new homes and retail parks, with no pubs, shops or sense of community. The process is known as “doughnuting” – named after the ring the developments form, leaving a hollowed-out town centre.

Poor public transport means most people who live on such estates are forced to use their cars to reach better amenities, causing town-wide jams, it says.

The report sets out a new vision for the expansion of market towns, citing Prince Charles’s environmentally friendly village, Poundbury, as a good example of how new communities can be created. It calls for “community extensions in which people actually want to live and work, and can enjoy”.

Additional reporting: Brendan Montague

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