Prescott said 43 000 homes were required in the next five years.
In a statement to the Commons, he said: “The Thames Gateway will become a hub for development and regeneration,” adding that he also wanted well-planned developments in Milton Keynes and Ashford in Kent.
The House Builders’ Federation broadly welcomed the announcement, but a spokesperson warned: “Councils are currently rejecting a lot of applications because they believe they are too dense for their local area.”