The Commission, set up by the Royal Institute of British Architects, has called on Government to use council pension pots to fund a massive building programme of up to 300,000 homes a year.
It argues that 15 of the largest council pension funds should be pooled into a £10bn fund to aid the financing of up to 6m new homes over the next 20 years.
A similar approach to that proposed is being pioneered by Manchester City Council, which is working with the Greater Manchester Pension Fund to build 244 homes.
The city council will release land into the joint venture at fair market valuation and GMPF will inject £25m to pay for building work.
Both partners will then receive a capital payment on the sale of houses and an annual revenue return.
The report, Building the Homes and Communities Britain Needs, was compiled by an independent group of experts headed by Sir John Banham who argues that council should take a lead role in delivering the homes.
The report also argues that the housing should be built in sustainable communities and offer more generous space standards to help councils to recycle them to the private sector.
“There is no better time to tackle the UK housing crisis,” said Sir John.
“After a year-long national inquiry, the Future Homes Commission has concluded a housing revolution is entirely possible and will lead economic growth.
He added: “We need to increase massively the number of quality homes being built for many years to come, but also to develop communities which enhance the quality of life for both new residents and those living in existing communities nearby. All this has to, and can, happen without any additional government funding.
“We strongly believe that local government can become the leader of new development once again, by using their assets and powers to create the type of mature, sustainable, mixed tenure communities that Britain needs and that institutional and international investors want to invest in.”
Mike Leonard, director of the MMA said: “RIBA are right to highlight the lateral thinking of Manchester and we truly hope this model can work.
“We have of course been here before when we were told institutional investors would save the housing market but sadly it was only a hope.
“If Mr Cameron believes we are on the "right track" we would remind him that the continued decline of the construction sector is resulting in loss of the very manufacturing capacity and skills we will need for the future.
“Once this is lost we will rely on imports and the best driver of jobs and growth will be broken forever.
“Yesterday’s growth numbers mask the real picture and could allow for disastrous complacency.
“Failure to stimulate the market by funding and building 25000 public rented homes will be the reason this Government will lose the next election.”
