More than 500 people have been taken off the social housing waiting list in the South Lakes since the beginning of last year.
However, local MP Tim Farron says ongoing government plans will wreck that progress.
The Lib Dem leader's been an outspoken critic of a Tory proposal to expand right-to-buy - he fears social housing sold off in that way won't be replaced.
There are currently more than 2,850 households waiting for a council house in the South Lakes.
Mr. Farron said: “This latest news about a reduction in the waiting list here in South Lakeland is good news for those currently on the list. However, it is clear that across the country we are facing a massive housing crisis, and the government’s plans will exacerbate that.
“Those currently on the social housing waiting list will find themselves competing for an ever-smaller number of homes, as the government’s Right to Buy scheme is introduced and the stock of housing is reduced.
“The government needs to seriously tackle the housing crisis, and that means building more affordable homes, not selling off the existing stock of social housing. Particularly in areas like ours, these homes will all too often end up as expensive private lets or second homes, which will destroy the social diversity of our communities.”