YORK'S housing crisis will be raised before the city's full council this week.

Labour councillor David Horton will say that the vast majority of newly formed households are unable to afford either a house purchase with a mortgage, or rent in the private sector.

The move comes just a few days after York MP Hugh Bayley outlined a 12-point action plan to deal with the escalating prices, and lack of affordable homes, in York.

Coun Horton, backed by Labour group leader Dave Merrett, will claim that: l Many families have been forced out of York due to rising house prices l Those people that do stay in the city, particularly those on low incomes, often have to live in poorer quality, overcrowded housing l Living in overcrowded residences can lead to poor mental and physical health.

Couns Horton and Merrett will call upon the council to welcome the Government's Barker report on providing new housing to meet projected need.

They will also call upon the executive member for housing to work with the Government and the Regional Assembly to increase the supply of affordable family housing in York, along the lines that Labour has argued at the recent regional spatial strategy hearing.

Coun Horton said: "The current Liberal Democrat support for a lower regional housing allocation for York will only exacerbate the York house price premium, as supply will be reduced by a third compared to the house building rates in York over the last six years."

Last week, The Press reported Mr Bayley's plans to resolve housing problems in the city.

In a speech in the House of Commons, he 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 fulltime 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."

Coun Ann Reid, executive member for city strategy, said: "House price rises over the last ten years have caused real problems for residents. However, given that homes are even less affordable in neighbouring Ryedale or Harrogate, it is a cheap trick from Labour to try to blame City of York Council. The shortage of good quality affordable homes, to rent or to buy, is a national issue."

She said the council had increased the proportion of affordable homes developers are required to contribute from 25 per cent to 50 per cent, and said Government legislation was a problem.

She added: "We have a good record of providing affordable homes using the planning framework available to us. 600 affordable homes were provided from 1998 to 2006. 780 affordable homes will be built in the coming years on sites which have already secured planning permission. Compared to other authorities we are doing well but with changes to legislation we could so much more.

"Coun Horton has only empty words to offer on housing - he puts forward no clear policies about how to get more homes built. I would urge him to put pressure on the Government to allow the Council to build more affordable homes itself, instead of being at the mercy of private developers."