Platform4 will combine the functions of London and Continental Railways Ltd and Network Rail’s property team with the aim of attracting private investment and accelerating the delivery of the new homes. Bringing the two together into one development company is expected to generate an additional £227m.

Neighbourhoods in cities across the country will be transformed with homes, green spaces, shops and hotels.

Four sites have so far been earmarked for development including Newcastle Forth Goods Yards, Manchester Mayfield, Cambridge and Nottingham; together they will see more than 2,700 new homes delivered.

Profits generated from the property company will be reinvested into Britain’s railways.

Transport Secretary Heidi Alexander commented: “It’s exciting to picture the thousands of families who will live in these future homes, the vibrant neighbourhoods springing up and the new businesses that will launch thanks to these developments.

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“Platform4 will breathe new life into these spaces, delivering tens of thousands of new homes as part of our Plan for Change promise to build 1.5 million homes, while reviving communities around rail stations, supporting jobs and driving economic growth.”

Deputy Prime Minister and Housing Secretary Angela Rayner said: “We are facing a housing crisis that has led to a generation being locked out of homeownership, all while land sits empty and disused across the country.

“We said we’d do everything possible to get Britain building, and that’s why today we’re setting out how we’ll get more homes built across surplus railway network sites in line with our brownfield-first approach and our Plan for Change target of delivering 1.5 million homes.”

Bek Seeley, chair of Platform4, said: “Platform4 will deliver on key government priorities, creating new homes and jobs and stimulating economic growth.

“Working alongside our partners and local authorities, we will create sustainable places that bring communities and customers together and leave a positive legacy for future generations.”

Neil Jefferson, CEO at the Home Builders Federation, said: “The public sector can play a key part in providing the sites for the homes the country needs and we welcome moves to bring more of this land forward for development.”

A spokesperson at the British Property Federation said: “The formation of this new development company is a welcome move that releases surplus and under-utilised public assets to generate an investable return, helps to stimulate local regeneration and economic growth, and aids housing delivery.

“We hope the company will have a transformative impact on local communities across the country.”