The Prince of Wales said the issue has concerned him "for many years"

Under the new scheme, launched on Friday, small developments of up to 25 homes would be made available through housing corporations.

Landowners would sell their sites at reduced market value.

The prince has already earmarked 11 sites for rural housing in the Duchy of Cornwall and he wants other landowners to support him.

I am determined that the Duchy should lead by example wherever possible Prince Charles Have your say on rural housing

The rural housing crisis has created a "desperate situation", particularly for the young, he warned.

They are being priced out of their childhood villages which, in turn, is slowly stripping rural regions of the community spirit which has been developed over generations.

Urging landowners, businessmen and farmers to find innovative ways to help, the prince said he was "acutely aware of the capacity of the business community to make a difference - even if it is not always realised immediately".

The prince was speaking as he gave his backing to a package of measures aimed at providing affordable housing, especially for low-income families and key workers.

He told a gathering on Friday at St James's Palace, including the Duke of Westminster who is also backing the scheme, that the issue has "concerned" him for many years.

The Countryside Agency estimates that about 10,000 new homes will be needed each year over the next decade and half of these are for settlements of below 3,000, where it is the most difficult to create small developments.

Shared equity

"I am acutely aware that, as Duke of Cornwall, I am a substantial landowner myself and that I personally have a role to play," he said.

"I am determined that the Duchy should lead by example wherever possible."

He has instructed the Duchy to write to all parish councils and rural housing enablers in areas where it owned land to offer help with smaller schemes if there is a need for affordable homes or houses for key workers and local families.