CRUNCH talks are to be held between council bosses and developers to thrash out a solution to York's affordable homes row.

Councillors from all parties are to meet with council officers and major house builders to discuss the city's controversial housing rules.

At present, City of York Council rules say 50 per cent of all developments of 15 or more homes should be affordable.

The builders say such criteria are unworkable and prevent land coming forward for housing, and council officers have acknowledged that the number of planning applications coming forward has slowed.

But the council says projections for the future are promising, and the two main parties, Labour and the Liberal Democrats, both support the retention of the 50 per cent clause.

At a meeting on Monday, developers appealed for a change in the rules.

John Reeves, of The Helmsley Group, said: "We can assure you, 50 per cent affordability ratios are unworkable. We cannot make it work financially or socially."

He said various schemes they had worked on would not have happened had such rules been in place, and said: "The current policy will lead to fewer houses being built." He said that would, in turn, lead to job losses in the construction trade.

Geoff Scott, managing director of Hogg the Builder, said a housing scheme in Dunnington had been shelved due to the 50 per cent rule reducing the land value too much.

He said: "Land which could be used to build homes is not brought forward. So not only does the city get no social housing - it gets a lot fewer new homes than it otherwise could."

Mr Scott appealed for a chance to work with planners, and council leader Steve Galloway said "round the table" talks would take place.

Coun Galloway said: "Forecasts are that we will be providing more affordable homes than in the past. It is not an open and shut case at all, but we will have dialogue with you."

Conservative leader Ian Gillies said he did not support the current council policy, and said a similar policy had worked in Harrogate - only because the aim there had been to suppress development.

He said: "I have spoken to developers locally and nationally, large and small, and the message is simple - for them to cost and evaluate a site, they need to work to a policy they can trust."

Tracey Simpson-Laing, Labour spokeswoman on city strategy, said: "The average York house price is eight times the average income of York's residents, while safe financial guidance says no more than 25 per cent of income should be spent on housing."

She added: "While I recognise the developers have issues, I believe that the guidance coming forward in the Green Paper Homes For The Future will address these and ensure that affordable homes are delivered."