The new planning regulations, laid out in parliament yesterday, will come into effect from 1 October. It will result in 80,000 fewer applications and save up to £50m, Housing and planning minister Caroline Flint said.

People will be able to build both up and out for the first time without needing to pay to up to £1000 to be granted specific planning permission.

Two-storey extensions will be allowed if they extend no more than 10ft (3m) from the back of an existing property while loft conversions will also be allowed without planning consent if they extend no more than eight inches (20cm) outwards from the eaves of a property.

They must also be no bigger than 50 cubic metres - about the size of a room measuring 18ft by 12ft. For terraced houses it is 40 cubic metres.

In conservation areas, loft conversions will still be restricted but single-storey rear extensions will be permitted.

The need to pay any extra council tax has also been scrapped. But 'larger more intrusive extensions' will still require planning permission.

Local authorities will have the discretion to tighten or relax the rules to fit local circumstances.