The consultation will propose that local authorities should differentiate between "prime" and "non-essential" retail space and that permitted development rights are introduced to allow homes to be built on the spaces classified as "non-essential" without planning permission, the report said.
Boles said that local authorities should stop trying to rescue some town centres and instead focus on revitalising one or two "prime" streets and use remaining retail space to build new, affordable homes.
The Department for Communities and Local Government said that the aim of the proposed policy was to facilitate new homes in side streets and edges of town centres where shops were no longer viable. It said it believes the increase in residents near the "prime" retail space would increase the number of customers and breathe life back into town centres.
"People's shopping habits are changing very fast as a result of the rise in internet shopping and changes in lifestyles and working patterns. We need to think creatively about how to help town centres thrive in this new era," Boles said, according to the report.
"We want to encourage local councils to concentrate retail activity into the prime shopping streets in the heart of their town centres and adopt a more relaxed approach to underused retail frontages," he added.
The report follows a study issued last week by umbrella group London Councils which found that there are 7,000 empty shops in the capital alone, costing the London economy £350 million in lost trade and earnings.
