The Labour leadership has suffered a defeat at its annual conference in Manchester. Delegates have backed a motion calling on the government to give more money for council houses "as a matter of urgency".
It was approved by a margin of almost two-to-one on a "card vote".
Ministers say they are already committed to ensuring extra homes are built, including more council properties.
But they opposed the motion, saying they can not give a "blank cheque".
Party officials say the majority of constituency parties supported the leadership, and the motion was only approved thanks to the trade union "block vote".
The party is also expected to suffer a second defeat later when delegates debate the health service.
A motion, put forward by Britain's largest union, Unison, is urging a rethink of what it calls the Government's "headlong rush" towards the marketisation of the NHS.