Local government leaders have welcomed a move announced by prime minister Theresa May that the cap on council house building will be lifted.
Mrs May told the Conservative Party conference in Birmingham that she would get rid of the cap on what councils can borrow against their housing revenue account assets to build new homes.
Lord Porter, chairman of the Local Government Association (LGA), welcomed the 'fantastic' announcement and said councils would look forward to building the homes people need.
Adam Lent, director of the New Local Government Network, said the move must be made quickly to tackle the serious crises affecting housing and council finances.
Mrs May told the conference the cap will be lifted 'as soon as possible', with further details confirmed in the Budget.
She said: 'Solving the housing crisis is the biggest domestic policy challenge of our generation.
'We cannot make the case for capitalism if ordinary working people have no chance of owning capital.'
Lord Porter said: 'It is fantastic that the Government has accepted our long-standing call to scrap the housing borrowing cap.
'We look forward to working with councils and the Government to build those good quality affordable new homes and infrastructure that everyone in our communities need.'
Mr Lent said: 'There is only so much uncertainty that both service users and those needing decent accommodation should be expected to endure, so clarity over the detail of these announcements is crucial.'
