Network Rail and the Homes and Communities Agency have already received proposals from York, Taunton and Swindon councils, but are hoping to work with at least 20 local agencies to bring the scheme forward.
Greg Clark, Communities Secretary said: “We’re determined to fire up communities and back local business so they build much needed housing and create thousands of jobs.
“Rail stations are a hub of communities, connectivity and commerce and should be making the most of their unique potential to attract investment and opportunities.
“With record numbers of people travelling by train, it makes sense to bring people closer to stations and develop sites that have space for thousands of new homes and offices.”
The initiative hopes to mimic the success of regeneration projects in Birmingham New Street and London Kings Cross.
York’s proposal suggests building 2,500 homes and 100,000 sqm of commercial space around York Central Station, creating over 6,600 jobs.
Meanwhile, Taunton Council is looking to remodel the station layout and car park, whilst Swindon hopes to revitalise leisure opportunities to the north of their station.
Patrick McLoughlin, Transport Secretary said the government was “determined to ensure further opportunities are grasped to put stations at the heart of wider community regeneration”.
“This will help deliver thousands of new homes and jobs and deliver a substantial return to the taxpayer,” he added.
The regeneration comes as part of a wider government push to increase home ownership.
Since 2010, 291,000 people have purchased their home with the help of government-backed Help to Buy and Right to Buy schemes.
The government has also doubled investment for 2018 to 2019 to £8 billion, to deliver more than 400,000 affordable homes.