Factory-built homes could account for a quarter of Britain’s annual supply under plans being considered by Downing Street.

A “fast-track” investment programme to build 75,000 modular homes a year by 2030 envisages creating up to 50,000 jobs and reducing carbon emissions from new homes by 40%.

The proposals, outlined in a paper co-authored by the government’s “champion for modern methods of construction”, Mark Farmer, would also increase funding for a range of housing tenures and factory production targets.

The paper is understood to have been well received by head of housing policy at No 10, Jack Airey.

It is due to be published this week.