HALF of working households in York cannot afford to get on the housing ladder, the city's MP has warned.

Hugh Bayley has set out a 12-point action plan, to tackle rising costs and a shortage of homes.

He said there was a particular lack of affordable family housing, and called on both the Government and City of York Council to adopt a series of new policies.

They include:

  • Permitting more greenfield development, as in parts of south-east England
  • Allowing the council to spend more of their receipts from council house sales on new housing
  • Providing cash incentives for council tenants to downgrade, freeing up family homes
  • Imposing restrictions on the right to buy council homes in York, as has happened in some other areas
  • Releasing Government-owned land for affordable housing
  • Cutting the average time taken to re-let council houses.

Mr Bayley praised the council for increasing the amount of affordable housing it expects in new developments to 50 per cent.

In a speech to Parliament, Mr Bayley said: "For first-time buyers, the cost of a house in York virtually trebled in six years. What kind of first-time buyer can afford a home costing £131,000?

"Assuming that they put down a five per cent deposit and obtained a mortgage of three and a half times their salary, they would need to earn £36,000 a year. Half of all residents in York in full-time employment earn less than £22,620. They would need to borrow six times their salary to buy, which is beyond them.

"That means that half of working households in York are unable to buy a home in their city."

The figures were based on a Land Registry report.

Mr Bayley added: "House prices are spiralling beyond the reach of many local people. You now have to earn more than the average wage to get on the first rung of the housing ladder.

"We need to build more houses for sale and rent, and to earmark as many as possible as affordable housing.

"I want both national and local government to change policies and work together to bring more housing on stream."

He supported the council's "bold decision" to increase its drive for affordable housing, and called for an urgent resolution to the proposed Germany Beck and Derwenthorpe developments. He said work should start shortly, or else the council should focus on finding alternative sites.

Council chief agrees with five proposals

CITY of York Council (CYC) leader Steve Galloway said there was no need for further greenfield development, as brownfield sites such as Nestle South, and York Central would satisfy building for at least 20 years.

He said: "Local authorities should be given more powers to bring back into use empty (privately owned) homes and other property which could be converted into residential accommodation. The increasing unaffordability of council housing in York is part of a national crisis."

Coun Galloway welcomed Mr Bayley's first, second, fourth, sixth and seventh proposals, but was unaware what Government land Mr Bayley thought could be opened.

He also said:

  • CYC should be allowed to build more council homes, if required
  • Housing re-let times had fallen in the past three years, and were only higher than five years ago because CYC now did repairs between tenancies
  • Shipton Street site had been sold, St Barnabas was not CYC-owned, and the Lowfield receipt was allocated to the new York High School
  • He supported proposal nine in principle and had allocated £30,000 to encourage low-occupancy tenants to move to smaller properties, but consultation showed elderly people preferred an assistance incentive, to ease the move
  • He was prepared to look at proposal ten, but there were already many mixed-equity schemes in the city
  • CYC already used its nomination rights with housing associations to the full.

MP delivers housing ladder action plan

Hugh Bayley has 12 proposals to tackle housing shortages and rising prices are:

For the Government

1. To increase York's social housing grant, so housing associations have more money to go into partnership with housing developers 2. To complete the Derwenthorpe and Germany Beck planning inquiries as soon as possible 3. To treat York like high-priced areas of south-east England, where greenfield development is permitted for family housing 4. To relax the rule that allows councils to spend only a quarter of their receipts from council house sales in new housing investment 5. To impose restrictions on the right to buy council homes in York 6. To release Government-owned land in York to be used for affordable housing 7. To extend the homebuy-plus pilot in the York "golden triangle" into a permanent scheme for low cost house sales.

For City of York Council

8. To cut the average time it takes to re-let empty council houses 9. To provide cash incentives for tenants who want to trade down from family houses to smaller properties 10. To set up a "rent and save" scheme for single people and childless couples to rent from the council while saving for a house purchase deposit 11. To use the Lowfield, St Barnabas and Shipton Street school sites for affordable housing 12. To use its nomination rights with housing associations to the full.