HUNDREDS of people are waiting for housing with no realistic chance of being able to afford a property, a York council survey reveals.

Figures from City of York Council show that 3,600 applicants are on the city's housing list.

While demand is mainly for rented accommodation, nearly half is for family housing - with particular interest in low-cost ownership schemes.

But the survey, which will be presented to councillors attending tonight's planning meeting, also says there is a "clear need to review the affordable housing policy operating in York".

This is because income has failed to keep pace with a surge in house prices. The report, a consultation draft on affordable housing advice, states: "Many of those requiring family accommodation have very low incomes and cannot realistically afford mortgages even for substantially discounted homes.

"For the majority of these households, affordable rented accommodation is the only option."

An additional 954 extra affordable homes are said to be needed by 2007 in order to meet the city's affordable housing needs - making a total requirement of 4,770 more houses in York. It also says that low-cost housing, designed to help those having trouble affording a home, "will not meet the housing needs identified". Shared ownership will only help a "small fraction of households in need".

One way of helping to solve the problem could be reducing the number of dwellings required in a development before affordable housing is taken into consideration.

That figure stands at 25. A minimum requirement of 25 per cent affordable housing on suitable sites in York could also be increased to 50 per cent.

Ann Reid, the council's executive member for planning and transport, said: "We are certainly very concerned about the need for affordable housing in York and the size of the waiting list.

"That's one of the reasons why we have supported high-density housing. This report is a draft for consultation and we want to hear what people have to say about its contents."

Updated: 12:18 Thursday, June 24, 2004