A radical proposal to allow councillors from individual wards to determine planning controls for their area would be the "biggest devolution" of power in years, Housing Minister Anthony Roberts says.

Mr Roberts last week joined Premier Gladys Berejiklian and Treasurer Dominic Perrottet in announcing the government's housing affordability package, which offered financial incentives for first home buyers and also changes to planning laws.

Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Minister for Planning and Housing Anthony Roberts unveil a housing affordability package last week. Credit:Nick Moir

But the measures also included a proposal by Mr Roberts to deliver more power to the smaller wards that make up councils.

Under the proposal, Mr Roberts told Fairfax Media, he could deliver directions under section 117 of the Environmental Planning and Assessment Act to require individual council wards to develop their own Local Environment Plans.