The sensational finds on Dorstone Hill, near Peterchurch in Herefordshire, were thought to be constructed between 4000 and 3600 BC, researchers said.
Some of the burnt wood discovered at the site shows the character of the building's structure above ground level.
The buildings, probably used by entire communities, are of uunknown size, but may have been of similar length to the Neolithic long barrows beneath which they were found - 70 metres and 30m long.
Researchers said they were deliberately burnt down after they were constructed and their remains incorporated into the two burial mounds.
The core of each mound is composed of intensely burnt clay, representing the daub from the walls of the buildings.
The buildings were likely to have been long structures with aisles, framed by upright posts, and with internal partitions, researchers said.
The smaller barrow contains a 7m by 2.5m mortuary chamber, with huge sockets which would have held upright tree trunks at each end.
These massive posts bracketed a linear 'trough' lined with planks, which would have held the remains of the dead.
"These early Neolithic halls are already extremely rare, but to find them within a long barrow is the discovery of a lifetime," said Thomas.
Archaeologists have long speculated that a close relationship existed between houses and tombs in Neolithic Europe, and that 'houses of the dead' amounted to representations of the 'houses of the living'.
The objects have close affinities with artifacts found in eastern Yorkshire in the Late Neolithic (2600 BC).
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