Yvette Cooper has called for housing to be put at the heart of the government's agenda, pledging to give councils "more flexibility" to build new homes.

The housing minister told delegates at the Labour Party conference in Bournemouth that Britain needs new homes to meet the challenges of the 21st century.

Outlining the main housing problems, including those faced by first time buyers and families, she announced an £8bn fund to build affordable homes and pledged to boost the social housing stock to 45,000 homes by 2010 and 50,000 after that.

She said: "It is time for councils to be able to build council homes too. We are changing the rules to make it easier for councils to build more homes."

Cooper argued that Labour "knows how much housing matters", and affected wider social issues including education, elderly care and the economy.

"It's much harder to improve kids' education, if they haven't the space at home to do their homework," she said.

"It's much harder to help pensioners stay well through the winter, if the windows rattle and let in the chill. It's much harder to build businesses or public services if the new recruits can't afford to live nearby.

"That's why the Labour government has done so much to keep mortgage rates low, after the devastating repossessions of the Tory years."

The minister said that despite house building standing at "its highest rate since 1990", that it still "isn't enough".

"This country hasn't built enough homes for over a generation. Conference, we need more homes," she said.

Pointing to the achievements of the government in taking more than one million children out of poor housing, she added: "But that is not enough. Now we must work together so by 2010 we make that two million children helped into better homes.

"And let us aim to give all our children that basic right - a decent and secure home in which to grow.

"Let this conference and this party now unite.

"Let us pledge to back more and better homes for Britain, and to make housing the progressive cause of the 21st century."