New planning proposals unveiled by the Conservatives “offer hope” to the construction industry, according to the UK’s largest builders group.

The Federation of Master Builders (FMB), which represents about 12,000 building companies, said proposals to reintroduce a presumption in favour of sustainable development and replacing the Community Infrastructure Levy with a tariff system would be a “welcome boost” to the beleaguered sector.

FMB external affairs director Brian Berry said a new tariff system would be a fairer and more consistent approach for developers who are worried by increasing development costs.

“We do, however, have some concerns about allowing neighbours to force a review of planning applications as in the worst instance this could slow down an already creaking planning system,” he said.

Taylor Wimpey chief executive Peter Redfern also welcomed the policy, describing it as a “workable approach” which would be an improvement on the current system.

The Conservatives describe their “Open Source” proposals, a concept modelled on the computer software sector, a radical reboot to the planning system.

It focuses on decentralising development control, giving local authorities and local people decisions over local plans, while abolishing quangos and central housing targets

Incentives include allowing neighbourhoods to keep some of the money contributed by developers to councils when planning approval is given. This builds on a previous announcement committing the Conservatives to reward communities (through a Council Tax fund matching scheme) which build more homes.

The party says it will also eliminate unnecessary bureaucracy by amending the Use Classes Order so people can use land and buildings for any purpose allowed in the local plan and limit appeals against local planning decisions.

However, where more than a small minority of residential neighbours raise objections to a proposal, then the application must be formally assessed by the local authority. The Conservatives think in practice this will lead to developers reaching voluntary arrangements to compensate nearby householders.

Greenbelt land would continue to be protected and the classification of gardens as brownfield land would end in order to stop “garden grabbing” development.

The Conservatives also commit to extending the scope of permitted development to further simplify the planning process and cut the number of planning applications.