Councils must take a central role in housing, according to the man tasked by ministers with resolving Britain's homes crisis. Sir Bob Kerslake, chief executive of the Homes and Communities Agency (HCA), marked its official start date with the admission that it must ‘hit the ground running'. The agency's first priority is to establish new ways of working in a bid to sustain development activity during the downturn. Sir Bob said: ‘We want to encourage local authorities to have a direct developmental role, too, with the benefit of grant funding support. We have been in informal discussions with the LGA already on this, and will continue to do so.' Other proposed measures, include providing flexibility on grant rates and tailored investment plans for housing associations, and continuing the ‘national clearing house' initiative to enable them to buy unsold private housing stock for affordable housing. The HCA will look at setting up joint venture models with developers, promote new low-cost home ownership, and ensure the redevelopment of surplus public sector land. Sir Bob Kerslake, chief executive of the HCA, said: ‘We need to hit the ground running in response to the credit crunch, and it's essential we respond with clarity and confidence. It's important not to miss a beat, in terms of delivering housing, and that we don't lose momentum now. ‘We will talk to housing associations, house-builders, RSLs, the National Federation, the LGA and other agencies to explore further options for dealing with the current economic climate, and to achieve a shared purpose on housing and regeneration. ‘We need to help maintain the appetite and capacity for development by using the HCA's investment resources. It is our role to fund viable projects on an investment-led basis and look to the private sector for new forms of investor finance, and to work closely with key stakeholders.'