YORK developers fear affluent executives and wealthy families could turn their backs on the city because of a shortage of spacious houses.

Property bosses believe that a drive for high-density developments has left the city flooded with apartments, but with few four and five-bedroom properties.

They blame Government housing policies, implemented by City of York Council, that encourage developers to squeeze as many properties as possible on to available land.

Michael Flude, of Hogg the Builder, said businesses looking to relocate to the city may decide to go elsewhere because of a lack of accommodation for their key workers.

He said: "York's planning policy is to build a large number of affordable homes, but this seems to be at the expense of larger, executive homes. There is a danger that those people looking for larger properties will not be able to find such accommodation in York and may start to look elsewhere."

He said buyers had recently reserved three out of five new family homes at Strensall and Gate Helmsley, at a cost up to £639,000, months before they are due to be completed.

Ian Hessay, managing director of Persimmon Homes, said developers want to see more "flexibility" from planners to meet the demands of would-be homeowners.

He said the need for larger houses in York was greater than Persimmon's ability to build them and there is a "massive undersupply" across the region. "I would not criticise the council. All they are doing is implementing the policies which are handed down from central Government in London," he said.

Updated: 10:17 Friday, April 09, 2004