Some of the country’s most picturesque villages will be earmarked for new housing under Tory plans to tackle the shortage of affordable homes.

The Conservatives want to give residents of areas dominated by second homeowners the power to grant planning permission to build houses for local people.

Under the proposals, community groups would be able to bypass councils and organise their own construction programmes.

Villages in beauty spots could expand by up to 10% over 10 years and there would be financial incentives to encourage more building.

The plans are inspired by a scheme in Rock, the exclusive Cornwall resort dubbed “Chelsea on Sea”.

Residents forced out of the market in the village clubbed together to build a small development of affordable properties available only to locals after setting up a community housing trust.

Homes worth up to £400,000 on the open market were built for just £85,000 apiece and were guaranteed to be owned by local people in perpetuity.

Villagers involved in the project built the houses themselves, putting in a minimum of 20 hours’ labour on the site in the evenings and at weekends.

The Conservatives want to encourage similar programmes in areas where property prices have rocketed because of second homeowners.

Under plans to be outlined by Grant Shapps, the shadow housing minister, this month, people will be given the power to hold parish-level referendums to decide whether to increase the size of their village.

If there is overwhelming support for housebuilding, they will be able to go ahead, without planning permission from the council.

“Lack of affordable housing in Britain’s most picturesque areas is a real problem, forcing people out of the places where they have grown up,” said Shapps. “Under our plans, communities can really be in charge of their own destiny.”

He said alternative ideas, such as heavy taxes on second homes, were the “wrong approach”.

Areas with a high proportion of second homeowners, where such initiatives are likely to be popular, include parts of Devon, the Lake District, north Norfolk, Berwickshire and Northumberland.

In Rock, the St Minver Community Land Trust built six two-bedroom bungalows and six three-bedroom bungalows for local families.

“Local houses are 100% unaffordable,” said David Wills, chairman of the trust. “Many are from £400,000 to £4m. We had a struggle to find people who could borrow £84,000. The deposit was their work. Every weekend for a year they built the houses. In the summer they were working nearly every evening.”

He described the village as “like a morgue” in winter because of the number of empty holiday homes. “This sort of scheme is vital. If we got up to 70%-80% second homes we probably would not have a football team, a cricket team or shops.”

Additional reporting: Dominic Tobin

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