South-east to get 200,000 homes

John Prescott signalled the death of the upmarket executive estate yesterday as he announced that at least 200,000 homes could be built to ease the housing crisis in London and the South-east.

New planning rules will insist on high-density, space-saving developments on derelict "brownfield sites" instead of lavish house-building projects on the green belt. The Deputy Prime Minister made it clear he was prepared to use draconian powers to send Whitehall "hit squads" into local authorities if they fail to meet new targets.

But Conservatives branded the proposals "Stalinist" and warned that suburban and rural areas would be blighted. Eric Pickles, the shadow Local Government minister, told MPs: "There can be no greater tribute to central planning as this housing statement."

But Mr Prescott insisted the proposals were necessary to reverse decades of under-investment. He insisted: "We will not tolerate urban sprawl and we will not concrete over the South-east ... or any other region."

Officials said green belt development would only be permitted if brownfield sites were not available.

Although the main targets for development are focused on the South-east, the Midlands and the North will also get help to promote building in areas of collapsing house prices. There was no specific target for building homes for low-income families.