A policy has been changed allowing Poole Council to sell off land for social housing without getting full market value for council tax-payers.
Local government legislation requires the council to obtain "best consideration" for the disposal of any publicly owned land.
However a meeting of the Borough of Poole has agreed to change its constitution to allow council assets to be sold at below market value.
"Provisions of affordable housing is one of the council's priorities," said Cllr Brian Leverett, leader of the council.
"One way we can achieve this is by making some of our land available. I consider this to be a very responsible use of our assets."
Tim Martin, head of legal and democratic services said: "The council has the power to dispose of land at less than best consideration provided a number of safeguards are met.
"Broadly these are that the disposal is in the interests of promoting the economic, social or environmental wellbeing of the area and that proper valuation advice has been received on the difference between the restricted and unrestricted values.
"The changes to the constitution are in line with this and are restricted, in this case, to the promotion of affordable housing, which is one of the council's key objectives."
Cllr Phil Eades, deputy leader of the Liberal democrats said they had raised issues of value for money at the scrutiny committee.
"The issue is so important it's almost not that critical," he said. "Affordable housing is the most critical problem we face in this borough. A whole generation haven't got a cat in hell's chance of buying property."
However he said: "There could be a scenario where it's an expensive piece of land where we are probably better off getting full value for it and building more affordable housing elsewhere."
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