Mayors across England are being encouraged to "go big" with ambitious social housing strategies that could be backed by billions of pounds in funding.
Regional leaders outside London will have the ability to identify the housing types required in their localities and determine which locations should take priority for development as part of their funding applications.
Housing Secretary Steve Reed called on councils to "go big, go bold and go build".
The investment forms part of the Government's previously announced 10-year affordable housing programme, which totals £39 billion.
According to the proposals, Greater Manchester is anticipated to secure £1.8 billion, West Midlands £1.7 billion, the North East £1.1 billion, West Yorkshire £1 billion, with both Liverpool City and South Yorkshire poised to receive a £700 million boost each.
The news follows concerns regarding affordable housing objectives, and the Government's capacity to achieve its 1.5 million new homes target, which were highlighted by the Housing, Communities and Local Government Committee last month.
A committee report stated the postponement in publishing a long-term housing strategy "left industry in the dark, without a clear sense of the trajectory of housing supply, and without an overarching plan as to how such an ambitious target will be achieved".
The Ministry of Housing, Communities and Local Government said the funding seeks to decrease the number of families trapped on social housing waiting lists, with 180,000 social rent homes anticipated to be constructed in England. A £150 million package has also been set aside for mayors to finance the development of brownfield sites, with the goal of constructing over 4,000 new homes.
Mr Reed said: "Families have been trapped in so-called temporary accommodation for years or stuck on council waiting lists with no hope of a secure home.
"We're changing that for good with the biggest boost to social housebuilding in a generation and getting behind mayors who are ready to build affordable housing across their regions.
"We're also backing councils to build again and transform derelict sites into thriving neighbourhoods, urging them to go big, go bold and go build."
Applications for funding will start from February.
Shadow housing secretary Sir James Cleverly said: "Labour are refusing to say when the money to actually build the homes will be made available – and how much of it, if any, will be up for grabs before the next election.
"This all smacks of another Labour promise without any plan for delivery, with the Government fiddling the figures to conceal the facts.
"Labour must come clean about exactly what funding councils will get and when. Otherwise, it will be impossible to take this programme seriously."
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