Defra claims to have closed a legal loophole that it says has prevented development in rural towns and villages.

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The environment department said changes to the village green system, which was put in place to prevent developers building on land used for recreation, will allow for new development in rural England. The government claims that protection accorded under village green status has been abused by local people seeking a loophole to prevent development in their community.

The moves follow on from earlier measures introduced in April, when Defra closed a 'loophole' allowing local communities to submit a village green application on land already earmarked for development. From October, applications relating to land which is regularly used for local recreation will have to be made within a year of the land's use, rather than two.

Defra said that, as an offset, landowners will be encouraged to allow local communities to make use of their land, but new landowner statements mean landowners can directly notify their local council of plans to end recreational use of land, which critics have said is likely to mean the public that benefits from access remains unaware that recreational land is under threat.

According to Defra, "as well as having a negative effect on the rural economy and reducing the value of land – often by over 90% – this [abuse] reduces the availability of rural homes, facilities and hospitals across the country." Changes that came into force on Tuesday (1^st October) mean it will no longer be possible to block local development by making spurious village green applications.

However, the Open Spaces Society, which campaigns to protect common land and public rights of way, contested the government's claims that village green status is being misapplied. The society pointed out that Defra has little evidence for its claims of abuse; the number of greens applications made in relation to planning applications is minuscule, suggesting if anything that common land is decreasing, and that planning records showed a drop in the number of greens applications between 2008 and 2011.

Nevertheless, Rural Affairs Minister Richard Benyon said on Tuesday that Defra's closing of village green loopholes would save local authorities £1.3 million a year (on "expensive and time-consuming public enquiries and court cases") whilst ensuring protection for genuine greens.

The Defra minister continued, "Towns across the country have been held back from getting the developments they want through misuse of the village green system. Rural communities need access to services like healthcare, schools and housing just as much as urban areas. These changes will allow that infrastructure to be built, creating jobs and economic growth."

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Stuart Ropke, assistant director of policy and research at the National Housing Federation, said, "Rural communities are some of the hardest hit by the housing crisis. A lack of housing means young people can’t stay where they grew up and couples can’t put down roots in their village and raise a family. Local businesses such as pubs and shops, which are already struggling to stay open, face a bleak future."

Kate Ashbrook of the Open Spaces Society countered, "Even if people have enjoyed 20 years of informal recreation [on an earmarked space] — which means the application is legitimate — they cannot apply to register the green. What Defra fails to acknowledge is that when local people have used land for a long time for informal recreation, they grow to love it, and they assume it will always be there. When it is threatened, of course they want to protect their rights to enjoy it — and greens registration is the means to record their rights. Communities may want some developments but they also want their village greens which they have enjoyed for decades."