Councils have been urged to seek out joint ventures with local housing associations by LGA Chairman, Lord Porter.
Issuing the call via Twitter, Lord Porter said: “Start your conversations with your best local members of National Housing Federation to see about doing JV deals to use the new headroom.”
He added: “Also start talking to the Federation of Master Builders about contracts to build. We don’t have time to waste reinventing the wheel.”
There have been several conversations about what councils should do with the new borrowing capacity, after Theresa May announced in her party conference speech that it was to be scrapped.
But not all council leaders were on board with Lord Porter’s call to action.
Philip Glanville, Mayor of Hackney, hit back and said he “might part company” with Lord Porter on this one.
He said: “I haven’t fought for nearly ten years to see debt cap lifted to see it deployed into JVs and housing associations.
“It’s time for councils like Hackney to be given the freedom to get on with it and build real council homes.”