Gordon Brown has urged English local authorities to "move fast" and make the best use of a £127 million pot of Government funding for 2,000 new council houses.
He was speaking as it was announced that 47 councils will receive a share of the cash to help build the homes.
The Prime Minister said it would give thousands of families energy efficient, cheap homes and boost the flagging housebuilding industry.
Mr Brown said: "The announcement means energy efficient, affordable homes for thousands of families and jobs in every part of the country for construction workers.
"This is a key part of the Government's plan to continue to invest through the downturn to boost our economy and to build Britain's future.
"We now need councils to move fast and make the best possible use of this investment, so that together we can meet local housing needs and support the housebuilding industry."
The announcement is part of the £1.5 billion for house-building announced by Mr Brown in June on top of the £600 million committed in the Budget in April.
At the time ministers confirmed that the extra money was not new cash, but would come from a reordering for priorities within the Department for Communities and Local Government and underspends in other Whitehall departments.
The councils involved will match fund the £127 million from Government, bringing the cost to £250 million.
But in what some will see as a reflection of the drought in council house building under Labour, Housing Minister John Healey trumpeted the 2,000 extra homes as the "biggest council house building programme for almost two decades".
