Reforms to Right to Buy (RtB) have given councils greater confidence in protecting and growing their housing stock, according to a Local Government Association (LGA) survey.
Last year's changes reduced discounts and increased flexibility over how councils could use receipts.
Nearly half of councils (48%) now feel more positive about housebuilding and a quarter said new schemes have been unlocked.
However, many authorities cited ongoing Housing Revenue Account constraints, with 52% unable to progress new projects.
The LGA, alongside the County Councils' Network and District Councils' Network, urged the Government to ‘go further to ensure that local government is fully empowered to deliver the homes we desperately need' including by allowing individual councils to fix discount levels.