Anti-terrorist police will need to mount similar raids in the future to that carried out in Forest Gate, east London, Sir Ian Blair has said.
Police said the source had been "credible" in the past
But the Metropolitan Police chief said new ways should be found of engaging with local people where raids occur.
The arrests in Forest Gate came after a tip from a credible source, the Metropolitan Police Authority was told.
Two brothers who were held in the raid, one of whom was shot, were later freed without charge.
After the raid, police and intelligence service tactics came into question from Muslim community leaders.
Police were reported to have been looking for a chemical device.
Sir Ian defended the decision to raid the property but said police "did not find what we were looking for and it seems we were wrong".
He added: "There will be other raids but the lesson of Forest Gate is that we have to find new methods of engaging with the Muslim community in particular to reassure them of the necessity and appropriateness of police actions."
Assistant commissioner Andy Hayman presented a report on the raid, named Operation Volga, to the MPA.
In the report, police said claims that 250 officers entered the house were inaccurate.
It said no more than 35 officers were in the property.
The operation followed information from a "credible sensitive source" who in the past had provided information which was later corroborated.
It stated that "all possible steps" had been taken to confirm or deny the intelligence before the raid took place.
"Further delay was not believed to be acceptable given the threat to public safety and the fear that if the intelligence is correct there was no guarantee the device would remain at the location leading to a loss of control," the report stated.