City of York Council could be given powers to seize empty homes and rent them out to the 4,000 families on its housing waiting list.

The Government is looking at a set of proposals to ease the crippling shortage of affordable homes in property "hot spots".

The most radical option would allow the council to opt for "compulsory leasing" of some of the 475 private homes in the city which have been vacant for more than six months.

Officers would be able to improve them, then offer them for rent to housing associations or families on their housing lists. York MP Hugh Bayley has written to City of York Council urging it to support the idea.

He said: "This is a serious proposal which could help some of the 4,000 families on York's housing waiting list who desperately need a home. I hope the council will back the proposal and use it when legislation is brought in."

But the council says it has not yet heard anything about the idea. A City of York Council spokesman said: "As yet we have heard nothing about this proposal, so cannot comment. We will have to wait and see what details emerge."

Under the scheme, the properties would be returned to their owner after a fixed period, lasting up to seven years.

Homes could be seized even if they were in good condition if officers could prove there was a "housing need" in the area.

The powers could also be used in Selby, which has 723 private properties that have been empty for six months or more. Ryedale has 104 homes standing idle.

Council leaders are now being asked for their views on the proposal. It is the latest in a series of Government initiatives to get empty homes back in use, including ending the 50 per cent council tax discount for landlords who fail to fill their homes.

The Office of the Deputy Prime Minister said landlords would benefit from renovations to the property and save on council tax bills.

The homes are also less likely to suffer vandal or arson attacks if they are in use.

York has a shortage of affordable homes, after losing 170 council houses per year under the "right to buy" initiative introduced by Margaret Thatcher. Only 110 new social and housing association homes are being built each year to replace them.

Rental homes in big demand

DEMAND for rented property in York and North Yorkshire is continuing to rise, according to a new survey.

The national survey by The Royal Institution of Chartered Surveyors (RICS) shows the market for rented property is at its strongest for two years. This could be due to first-time buyers being priced out of the market and homeowners selling up and renting in the hope of making a profit whilst the market is still strong.

Modest rises in rents throughout Yorkshire and the Humber are expected in the next three months, taking the current average rent of £464 a month even higher.

A spokeswoman from Minster Property, in Walmgate, York, said: "We have found more and more people are renting because they can't afford to buy."

Updated: 11:19 Wednesday, May 28, 2003