This review will assess if councils are doing enough to deliver new social housing, and consider how they can work more closely with housing associations, housebuilders and businesses to build more new homes.
Pickles said: “Our reforms have already untied the hands of councils so they can take more responsibility for housing in their area.
“This review will now consider if extra freedoms and financial flexibilities could be devolved to councils, so they can build more homes that local people need.”
He added that housebuilding is now at its highest level since 2007 and construction orders are growing at the fastest rate for 10 years.
The review will also be led by Natalie Elphicke, chair of Million Homes, Million Lives, and Keith House, leader of Eastleigh Borough Council.
Danny Alexander, chief secretary to the treasury, said: “I am, however, determined that we do even more to support affordable and good quality housing in the UK.
“That is why we have announced this new review into the role local authorities can play in helping to meet our housing needs, and I am delighted that Natalie and Keith have agreed to lead this.”
