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The move follows last week's Communities Plan, which emphasised planners' role in delivering more affordable homes.

It also follows government figures released last week showing that social housebuilding slumped to a new low in the last quarter of 2002. The number of social housebuilding projects started in the quarter was 22% lower than in the previous three months – falling from 4800 homes to 3800.

Housing market issues will form part of the commission's CPA for district councils when it is rolled out in June. It will also be included in unitary and county council assessments from 2003/4.

Roy Irwin, the commission's chief housing inspector, said it was discussing with the Office of the Deputy Prime Minister the way planning should be assessed.

He said they had not finalised details of the scoring for planning in the district CPA but that there could be a separate score for housing market issues.

A spokesman for the ODPM said housing and planning departments would be inspected simultaneously. The inspections would look at how well they worked together, he said.

Talks will continue until mid-March and then the proposals will go to wider consultation.

The main points of the Communities Plan affecting planners are:

• more than £6m for regional assemblies to improve regional planning

• £17m to improve urban design skills

• councils must produce development plans and demonstrate success at getting plans in place in their annual monitoring reports

• the government can intervene in poor-performing planning departments

• consultation on allowing councils to seek affordable housing on smaller sites

• developers can appeal if they think brownfield schemes are being obstructed by councils

• English Partnerships to get an extended land assembly role.

The proposal to inspect planning departments met with a mixed response from the sector.

Robin Tetlow, managing director of consultant Tetlow King Planning, welcomed the interventionist approach.

But professor Kelvin MacDonald, director of policy and research at the Royal Town Planning Institute said the proposals were "a bit harsh". "There is a need for housing targets to be met but the responsibility lies equally with the Housing Corporation, housing associations and private builders and it seems harsh to focus solely on the local authority," he said.

Junior housing minister Tony McNulty said planning departments will get at least £75,000 net year with extra money for authorities in high demand locations and the four growth areas. He said future grants would be linked to performance.

Gareth Capner, senior partner with planning consultant Barton Willmore, said planning targets need to be rewritten to encourage delivery of homes rather than the time taken to process applications.

Meanwhile in evidence to the ODPM select committee chaired by Andrew Bennett, planning consultant Roger Tym & Parters said funding must be established for infrastructure in growth areas.

In evidence to the ODPM select committee, they said investment would be substantial and would need inventive use of PFI, section 106 and government budgets. He also called for an effective public/private partnership to match planning with delivery.