In a report released yesterday, the government's affordable housing agency adds that the target for three million homes by 2020 is "looking ever more unrealistic".
It calls for councils to be obliged to give greater weight to siting and design of developments, public transport investment and the effects on employment mix.
Corporation chief executive Steve Douglas said: "The report sets out some of the key challenges and opportunities that the forthcoming Homes and Communities Agency will face in delivering social and economic benefits to communities."
Public consultation on PPS4 finished in March but the DCLG has yet to issue its final policy.
The report is available at PlanningResource.co.uk/doc