Measures that would allow councils to intervene in the ailing housing market are expected to be announced by the government next week.
Councils could get more powers to buy repossessed and unsold homes to let to tenants, ministers are expected to say.
Sources have suggested to the BBC that housing associations and councils could be given more freedom to buy unsold and repossessed properties.
The government could also allow local authorities to buy a stake in the homes of buyers facing repossession, in an attempt to reduce mortgage debts.
They may also be able to offer mortgage rescue plans by buying a stake in the property of someone in difficulty.
Ministers are expected to unveil plans to help the ailing housing market next week. A spokesman said a "wide range of options" was being looked at.
A government spokesman said a wide range of options was being considered.
But no announcement on possible changes to stamp duty is expected.
Typically, a rescue scheme would involve a social landlord taking a share in the property, with the borrower then paying a smaller mortgage for their share of the home and rent for the part of the property they no longer own.
The government has been working on a package of measures to help people struggling with housing costs and the declining housing market, where prices have fallen recently at their fastest rate since 1990, according to a survey by the Nationwide.
Earlier this week, the Council of Mortgage Lenders said that such schemes were already being offered in a handful of local authorities in England, and were being considered in Wales, Scotland and Northern Ireland.
Existing budgets
But the body called for a standardised scheme to be introduced across the UK, leaving repossession as a final resort.
The Times reported that ministers would create a new era of council housing, by helping local authorities to buy repossessed and unsold properties.
Stamp duty
Sources have indicated to the BBC that housing associations and local authorities could get more freedom to buy unsold and repossessed properties.
The government is expected to announce its plans next week - possibly on Tuesday.
And, using existing housing budgets, the government may decide to put forward plans similar to those suggested by the Council of Mortgage Lenders - allowing local authorities to buy a stake in a house of someone facing repossession.
Also on the table could be a package of shared ownership for first time buyers struggling to get a deposit.
We are determined to do everything possible to promote long-term stability and fairness in the housing market Department for Communities and Local Government spokesman
However, an announcement on stamp duty is not thought to be likely.
It would mean a social landlord taking on a share of the property, with the borrower paying a smaller mortgage and rent for the part of the property they no longer own.
There have been calls for the government to declare a stamp duty holiday to help first time buyers.
The Council of Mortgage Lenders said some English councils were already offering the schemes but called for one standard scheme to be introduced across the UK, leaving repossession as a final resort.
But the government has also been attacked for briefing that stamp duty could be axed temporarily to boost house sales - leading to criticism that it has frozen the market.
A similar option could be offered to first-time buyers struggling to get a deposit.
On Wednesday, the Liberal Democrats unveiled a plan to help the housing market which included mortgage rescue schemes.
Price falls
Lib Dem Treasury spokesman Vince Cable also said local authorities should be able to buy unused land at a discount rate to build new social housing.
A spokesman for the Department for Communities and Local Government said: "We are determined to do everything possible to promote long-term stability and fairness in the housing market.
"The international credit crunch has created significant challenges not just for the UK housing market, but in other parts of Europe and the United States.
"We are looking at a wide range of options to further support the housing market in the current climate, working closely with industry and lenders. What form that support will take will be announced in due course."
On Thursday the latest survey by Nationwide suggested UK house prices had declined by 10.5% since August 2007 - the highest fall since 1990.
Liberal Democrat Treasury spokesman Vince Cable has said that, with such a big drop, it is likely about 300,000 owners are in negative equity - and that figure could quadruple if the drop continues.
He also said local authorities should be able to buy unused land at a discounted rate to build new social housing.
Both the Conservatives and the Liberal Democrats have accused the government of stalling the housing market further by allowing speculation about a "stamp duty holiday" to cause would-be buyers to delay purchases.
There have been suggestions that the payments could be temporarily deferred to try to boost house sales.
But the government is not expected to include stamp duty measures in its announcement next week.
It has denied making any proposal on stamp duty - Chancellor Alistair Darling has said a "number of measures" are being considered.
Latest figures suggest that some 18,900 homes were repossessed in the first six months of this year, up from 12,800 in the same period last year.
Latest figures suggest that some 18,900 homes were repossessed in the first six months of this year, up from 12,800 in the same period last year.
Have you been affected by the issues covered in this story? Should housing associations and councils be allowed to intervene in the housing market? Send us your comments using the form below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
