Raising the affordable homes threshold would help boost smaller developments, the National Federation of Builders (NFB) has argued.
The NFB said the proposed planning changes should allow up to 50 homes to be built before an ‘affordable homes' quota kicks in.
Rico Wojtulewicz, head of housing and planning policy at the NFB, said: 'Negotiations on affordable homes has meant that developments have been delayed by up to two years.
'If you raise the threshold for building affordable houses then more homes will be built throughout the country.'
The Local Government Association (LGA) has warned the proposals would have seen 30,000 fewer homes being built over the last five years.
David Renard, LGA housing spokesperson, said: 'Proposals to exempt developers from having to build affordable housing on certain small sites are of huge concern. With rising housing waiting lists and record numbers in temporary accommodation, we desperately need to be building more affordable housing, not less.'
