Healey (pictured) told a fringe event at the Labour Party conference this week that a Labour government would create the English Sovereign Land Trust to purchase un-used public land.
He argued that surplus land owned by public entities ought to be sold off at values based on its use, rather than at the increased price that land commands once it is granted planning permission.
The body would have the powers to purchase the land at a fair price in order to help tackle the housing shortage.
Healey condemned the “huge profiteering” that takes place off the back of public policy decisions.
He said: “We need to get a system where the cost of land reflects its use rather than the hoped value.”
The shadow housing minister said that if social housing projects had continued the same rate as in 2010, then by now there would be sufficient homes to meed demand.
He highlighted research from the New Economics Foundation showing that just six per cent of homes built on publicly-owned land are social rented homes.
The fringe event was organised by the Affordable Housing Commission.