Labour Party housing guru Sir Michael Lyons has cautioned council chiefs to be realistic over the sector's desire to see an immediate lifting of the Housing Revenue Account (HRA) borrowing cap.

Sir Michael, whose independent policy proposals on housing for the Labour Party were published in October, today defended his recommendations at the Local Government Association's environment, economy, housing and transport board.

Sir Michael said critics had charged his submission was not ‘bullish' enough on the need to remove the HRA borrowing cap and increase housing investment.