I've never heard of this, and it does seem a bit intrusive to me.
As thatbags said, isn't there always the danger that a teacher's view of, and reaction to, a child's behaviour, abilities and potential may be influenced by the sort of home the child comes from? Also, I can imagine how daunting such a visit must be for a family on a low income living in overcrowded, sub-standard housing.
I prefer the idea of a series of small, informal get-togethers at the school where parents and teachers can exchange information, as well as some "introductory" sessions to get the children used to the school environment. If problems arise early in a child's schooling, presumably a home visit would be arranged anyway and, if it was thought necessary, other agencies would get involved?