The number of newly built homes has increased 6% in the past year, new figures released by the DCLG show.
The latest house building data shows that 139,030 new homes were completed in the year to June and have continued to build gradually over the last 2 years.
Responding to the latest housebuilding statistics, Cllr Martin Tett, Housing spokesman at the Local Government Association, said: "Councils and the Government both share the same ambition to build more homes.
"Bold new action is needed to solve our housing crisis and a renaissance in house building by councils must be at the heart of this.
"We need to be building up to 250,000 a year to tackle our housing crisis. The private sector clearly has an important role to play but these figures only serve to confirm that they cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead.
"Councils want to get on with the job of building the new homes that people in their areas desperately need.
"If we are to stand any chance of solving our housing crisis, councils must be able to replace sold homes and reinvest in building more of the genuine affordable homes our communities desperately need now more than ever."
