TENANTS in York who cannot afford the city's high rents are to be provided with a solution by York Housing Association.

The organisation is planning an initiative for people who fall in the gap between council housing and private rented accommodation.

Christine Storrs, chief executive of the York Housing Association, said many people in York and North Yorkshire fell into a "grey area". They were not entitled to benefits as they were not in financial hardship, but they could not afford to buy their own home or rent private accommodation.

The association is in talks with a developer about the scheme, which will provide an alternative housing solution for people on modest incomes.

It is expected that the rent on these new homes would be less than in the private sector, but more than rents for council houses and mainstream housing association properties.

Mrs Storrs said that first-time buyers in the York area needed a household income of around £23,000 a year to be able to afford to get on the housing ladder.

"This is out of the reach of many people, particularly young people just getting started in their career, those households that only have a single earner and some key workers in both the public and private sectors," she said.

The availability of council houses and housing association properties in York was limited, she added. The new housing would be designed for people to rent for two or three years until they established their careers and were able to buy a property.

The association is also working with East Riding of Yorkshire and the Wilf Ward Family Trust to provide new housing for people with learning disabilities.

Updated: 10:12 Saturday, September 13, 2003