AFFORDABLE housing is still beyond the reach of many of York's poorest residents, according to a new report.

Attempts to encourage sales of discounted sale and shared ownership homes are being thwarted because most of the 4,500 people on City of York Council's housing waiting list are on too low an income.

Residents interested in buying an affordable home must register on the list before they can be considered for a property.

But only about 250 to 300 of those who are currently registered and have expressed an interest in a discounted sale or shared ownership home meet the necessary income criteria.

The report, by Suzanne Walters, housing development manager with the council, says: "While a number aspire to buy shared ownership and discounted sale opportunities, in reality the majority of homes are not affordable to them."

She states that 68 homes for discounted sale or shared ownership have been negotiated since a Housing Needs Survey in 2002 identified a shortfall of 954 affordable homes per year for the next five years.

Another 60 are anticipated in 2004-5, and plans to increase the proportion of affordable homes in most new developments from 25 to 50 per cent were this week referred to the council's Green Belt Working Group by members of its ruling executive.

The majority of these properties would be for affordable rent rather than sale, and councillors are to consider proposals to improve the allocation system, such as a separate waiting list and clearer criteria to prioritise candidates. A part-time assistant could also be employed to deal with the increased workload.

Under the shared ownership scheme, a purchaser buys a percentage of the house and pays rent on the remaining part, with an option to increase ownership over time.

Purchasers of discounted sale homes just buy a fixed percentage of the house. However, the discounted price is still based on the market value of a property, and spiralling house prices in York compared with incomes can exclude many potential buyers.

The report will be discussed at a meeting between the executive member for housing, Coun Sue Sunderland, and the housing advisory panel, on Monday, at 5pm.

Updated: 10:44 Friday, May 07, 2004