Local authorities should be offered greater incentives to allow new homes to be built in their areas and communities should be compensated for the cost of development through a single social social cost tariff,\" according to a new report on housing supply by think-tank Policy Exchange. Better Homes, Greener Cities sets out a range of proposals aimed at meeting the country’s aspirations to live in family homes in green suburbs rather than high rise developments. Measures include abolishing the plan-led system in favour of a presumption of a right to develop, and the replacement of section 106 and other development charges with a single transparent tariff to compensate communities, worth up to £500,000 per hectare, which would generate around £3.5 billion a year on the basis of current build rates at a density of 30 units per hectare. \"The government’s policy of cramming people into multi-storey blocks means that a family home is becoming a luxury few can afford,\" said Policy Exchange director Nicholas Boles. \"We need to build more houses, but in a way that respects the needs of the environment.\"