The problem of affordable housing is not to do with local government. It has been caused by central governments not fully thinking through the implications of legislation; and not looking back at why things are how they are before legislating.
Durham always was largely owned by landlords, up tp the '80s it was full of "bed-sits" - properties in mixed occupation,students, young working people & older singles. There was a property tax, Schedule A, based on the rental value of properties. Mortgage interest relief was set against this tax.
When they (Tories) abolished Scedule A, ownwere occupiers leapt in untile the loss of revenue was such that Mortgage interest relief also had to go.
When the Tories were desparate to get rid of Poll tax, they made properties entirely occupied by people in full time education exempt Council Tax. "Buy yo Let" landlords then were given two huge advantages over other people in the housing market as they can set Mortgage interest against rental income and bump up rents as student tennants do not pay Council tax.
Government should simply remove interest relief on all residential property and level the playing field between landlords & private buyers.

What about the residents with homes who face hikes in council tax and the cost of living?

These homes are now unaffordable not just to buy, but to carry on living in!

The Lib Dems have hugely increased council tax in Durham - the new unitary authority must deliver lower council tax bills - thankfully the Liberals won't be running the show!