A HOUSING crisis is on the cards if plans to cut the number of homes built in York by half become reality, opposition councillors claimed today.

Labour said the city - already feeling the pinch from a booming property market - needed more housing not less.

Any slump in new homes will force up house prices and hit beleaguered first-time buyers, the party said, forcing many out of their city.

The shadow executive spoke out in the wake of draft figures drawn up by the Yorkshire Regional Assembly.

City council leader Steve Galloway admitted the figures were "crude" and would be subject to "further dialogue" as a balance is struck between economic growth and future housing demand.

But he stressed that lower house building requirements in York was good for the city as it eased pressure on the green belt and meant less high-density developments.

He told an executive meeting it was "amazing" that Labour criticised the number of high-density flats cropping up in York, and then complained about the assembly's draft figures. If 8,000 new homes were built in the next 15 years, sites had been identified for them at Derwen-thorpe, York Barbican and York Central.

He said: "I do believe we will be able to accommodate these homes without there being a major adverse impact on the city in terms of its appearance or historic core."

But Labour's Ruth Potter said that between 1999 and 2004, 920 new homes were built in the city each year.

She said the assembly, through recently released Regional Spatial Strategy figures, has proposed this could drop to as low as 500.

The strategy sets out guidelines for building and development needs across the region until 2021.

Coun Potter warned: "If we don't provide enough housing then young people in York will have no chance of getting a home in their own city.

She said: "Many ordinary people may find they simply can't afford to live in York. That would be a great loss. York's economy is set to grow, but unless we have the housing to match the jobs we could be facing a real crisis."

At a full council meeting tomorrow, Labour will call on City of York Council to back a motion opposing any reduction. The Liberal Democrats back a reduction in house building, but say the figure of 500 homes a year was not acceptable as it lacked "flexibility".

Updated: 10:35 Monday, April 11, 2005