Councils could get more powers to buy repossessed and unsold homes to let to tenants, ministers are expected to say.
Councils could get more powers to buy repossessed and unsold homes to let to tenants, ministers are expected to say.
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.
Ministers are to unveil plans next week, which could also allow local authorities to buy a stake in the homes of buyers facing repossession.
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 survey suggests house prices have fallen by their largest amount since 1990 in the past year.
But no announcement on possible changes to stamp duty is expected.
An announcement on stamp duty is not expected. A source called stories of a holiday from the tax "speculative".
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.
The government has been working on a package of measures to help people struggling with housing costs and the declining housing market.
Existing budgets
Existing budgets
The Times reported that ministers would create a new era of council housing, by helping local authorities to buy repossessed and unsold properties.
The Times reported that ministers would help local authorities to buy repossessed and unsold properties and to allow them to buy a stake in a property where the owner is facing repossession. They could then remain in their homes on a part-buy, part-rent basis.
Sources have indicated to the BBC that housing associations and local authorities could get more freedom to buy unsold and repossessed properties.
A government source told the BBC those reports were "broadly in the right ballpark" and a package of measures would be announced next week.
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.
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
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
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.
The Council of Mortgage Lenders says some English councils are already offering the schemes but has called for one standard scheme to be introduced across the UK, to reduce repossessions.
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.
A similar option could be offered to first-time buyers struggling to get a deposit.
Price falls
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.
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.
"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."
"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."
Price falls
England's National Housing Federation urged ministers to allow "mortgage rescue schemes" - letting housing associations to buy properties from those facing repossession and allowing them to stay on a part-rent, part-buy basis.
Chief executive David Orr said his organisation had put forward the proposal and were confident the government would adopt it.
"A mortgage rescue scheme would give people facing repossession the lifeline they desperately need and allow them to stay in their home," he said.
"Repossession should always be a last resort and the government must play their part in helping people to stay in their home during these difficult economic times."
For the Local Government Association, Paul Bettison said a "mortgage to rent scheme" was a step in the right direction but councils must be given more financial flexibility to raise the money needed.
On Thursday the latest survey by Nationwide suggested UK house prices had declined by 10.5% since August 2007 - the highest fall since 1990.
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.
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.
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 has denied making any proposal on stamp duty - Chancellor Alistair Darling has said a "number of measures" are being considered.
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.
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