Henry Pryor from HousingExpert.net said the plan could be the most controversial change to the planning system since the War though a "potential solution to the acute housing shortage we have at present".

BBC: Property planning rules to soften

The spur to the rethink is the acute shortage of affordable housing, particularly in London and the south-east.

ECONOMIST: Social housing

One reason for optimism is that the Bharatiya Janata Party, which controls the national government, also governs Mumbai and Delhi, where the housing shortage is most acute.

ECONOMIST: Housing finance in India

The groups want restrictions on the rights of outsiders to buy social housing where there is an acute shortage of homes.

BBC: Rural housing shortage 'worsens'