Housing Secretary Michael Gove unveiled the government's updated National Planning Policy Framework, saying action will be taken against councils that miss deadlines to submit development plans.
In a speech in central London on Tuesday, Gove also announced a series of measures he says will boost planning performance across the country and unlock new homes.
He promised to “call out” local authorities that fail to publish their future development plans with a threat to intervene if necessary.
Gove said local authorities have three months to come up with plans to meet the housing need in their area. Those that do not could have developments forced on their area, and councillors could also be stripped of their powers to delay applications.
“There is no excuse for the arbitrary refusal of planning permissions. Delay, no. Denial, no,” Gove said.
The levelling up secretary also unveiled plans for a major expansion including around 150,000 homes around Cambridge, and ordered a review of the supply of homes in the capital in a move that sets up a major showdown with Labour Mayor of London Sadiq Khan.
Key other proposals included ditching requirements for local authorities to allocate greenfield land to meet housing targets and providing more resource to make the planning system work better, with the introduction of a "super squad" of planners.
There will also be a review of the statutory consultee system.
Gove said: “The role of planners is critical, but their expertise is undervalued by some local authorities. We will provide the resource to make the planning system work better. I will make sure every local authority is held to account for delivery against its plan, for the speed with which planning applications are processed and the rationality of their decision-making.”
Ian Fletcher, policy director, British Property Federation said that by changing how local authorities should assess housing need the government is watering down its own national targets and creating more obstacles and delays to housing delivery.
Fletcher added that that is it often overlooked that if less land is allocated for housing, less land is likely to also be allocated for the commercial developments "we need to create jobs and drive the economy". These changes could have "far-reaching consequences and undermine the government’s growth agenda," Fletcher said in a statement.
He said that in addition, as several aspects of the planning system are presently under consultation, some local authorities are delaying publication of Local Plans, which in turn is deterring investment.
"We would like to see all local authorities have a Local Plan in place but Government needs to use the carrot as well as the stick, providing more resources for planning departments and a clear policy framework to shape how Plans are developed."
Fletcher said the review into statutory consultees is welcome and shows that government does recognise the need to speed up the process.
"There is a massive opportunity to unlock more private capital to revitalise towns and cities if Government takes decisive action to modernise the planning system as well as commit the funding that planning departments need after a decade of cuts.”
Alistair Watson, UK head of planning and environment at law firm Taylor Wessing, said Christmas had not come early for local authorities, investors, developers, those wanting to buy a home, local residents and many others.
"Government is less like Father Christmas and more like the Planning Grinch."
Watson pointed out that if there is a change in government in the next 13 months, the long-awaited changes to the NPPF may "get binned and never really be tested".
"The government has missed the major opportunity to make a significant difference. The real estate sector, including serious and experienced planners and local authorities, consider that the Government has got this wrong. Why does it think that it is right?"