HALF of all new homes in York look set to be made "affordable", in a bid to cope with rocketing house prices.

City of York Council's ruling executive is poised to approve plans next week to increase the proportion of affordable homes required from new housing developments from 25 to 50 per cent.

Housing developers have raised concerns that the new quota would make it harder to develop brownfield sites because of the extra costs involved.

But a council report states that similar concerns had been raised when the 25 per cent figure was introduced in 1998.

It says: "With the boom in house and land prices, it was felt that land in York still realises a higher value even if a target of 50 per cent was imposed."

The report was drawn up by the council's housing scrutiny board, in consultation with bodies including the Joseph Rowntree Housing Trust and Persimmon Homes.

It was referred to the authority's ruling executive by its housing advisory panel earlier this month, after it was felt that the issues raised by the document would also have an impact on the social services and planning sides of its work.

If the recommendations are accepted, the rule will apply to new developments of 15 homes and above. The current quota applies to developments of 25 homes and above.

Council officers also want 90 per cent of these affordable homes to be given to the rental market, in an attempt to ease the difficulties faced by people unable to afford either to buy their own homes or to rent in the unsubsidised private rental market.

Only ten per cent will be for the discounted for sale market, usually open to people on the council's housing waiting list or renting from a housing association.

During the past year, the value of housing stock in Yorkshire and the Humber has increased by 25 per cent, compared with increases of eight per cent in the south-east and 11 per cent in Greater London.

It is hoped that the new quota would not only assist people on low incomes in York, but also contribute towards meeting an anticipated shortfall of 954 new homes over the next five years, which was identified in November.

The council executive will meet at 2pm on Tuesday, May 4, at the Guildhall to discuss the recommendations.

Updated: 11:18 Monday, April 26, 2004