The group said it has written to Planning Minister Matthew Pennycook to raise concerns about the proposals.
The Liberal Democrats claim the changes would reduce the number of planning applications considered in public and restrict the circumstances in which local councillors can call in decisions affecting residents.
Oldham Liberal Democrat group leader Sam Al-Hamdani said the changes would not address problems with the supply of new housing.
He said: “The Government is burying its head in the sand. In the last 20 years, around 1.5 million houses received planning permission, but were never built, under the country's developer-led system.
“If we built just 10 per cent of those as social houses each year, it would revolutionise the housing market – making housing more affordable, and building those new houses to higher standards – while challenging the huge growth in wealth inequality which is undermining this country.”
The party also said Liberal Democrats are putting legislation before Parliament which would seek to deliver 150,000 social homes a year and change right to buy rules.
Oldham Liberal Democrat planning lead Garth Harkness said the party wanted greater public involvement in planning decisions.
He said: “Changing whether planning applications can be heard in public or not is simply missing the point. We want more democratic engagement, not less. And we want the right type of housing in the right places – quality social homes for local families or brownfield sites, not high-profit luxury homes on green belt sites.”
