Rural communities throughout the district may have been thrown a lifeline after the government promised to combat the problem of providing affordable homes.
Housing minister Margaret Beckett and Rural Affairs minister Huw Irranca-Davies have said they will relax the rules which prevent development outside urban centres.
With average house price in the region's rural villages now up to 11 times the household income the government wants authorities including Teignbridge to identify 'exception' sites that could be used for affordable homes.
Medium-sized rural towns will be allowed to develop sustainable new neighbourhoods rather than building soulless housing estates on the edge of town.
Rural businesses are also to get help by making it easier for them to get planning permission.
Mrs Beckett said: 'We simply must take action to overcome the unsustainable pressures facing the future of rural communities in the south west.
'All too often the high cost of homes and low wages are pricing young families out of their communities.'
The government's change of heart follows the publication last year of a report by Matthew Taylor, the Lib Dem MP for Truro who was commissioned to come up with solutions to the rural crisis.
Following the government's announcement on Wednesday he said: 'This is an important day for the countryside. No change is no option.
'The alternative to sustaining and rejuvenating rural communities is to fossilise them, in time forcing out the families and working people without whom farms can't be tended, shops and services kept running, village schools kept open.'
Housing campaigner Cllr Jeremy Christophers, who has fought to allow modest growth in his village of Bickington, gave the announcement a cautious welcome.
'It's basically good news but doesn't go far enough to future-proof our villages,' he said.
'I would like a lot more emphasis on the Community Infrastructure Levy, a charge on all open market developments which would allow Bickington to invest in a scheme to generate power from the River Lemon.
'That would literally give us an income stream to help with future projects.'
Teignbridge Council leader Cllr Alan Connett said: 'We welcome these plans which complement one of Teignbridge's own key priorities, the delivery of much-needed affordable homes for local people.
'The government sets out some specific proposals and we look forward to working together with our rural parishes and emerging district-wide community land trusts, to identify more opportunities that help provide good quality affordable homes.
'Teignbridge already looks set to deliver an extra 100 homes this financial year, and with up to an extra 400 homes planned for the next financial year we are positive this new national commitment will only help us to ensure our local rural communities get the special focus they deserve.'