THE "right-to-buy" council houses at hugely reduced prices could be restricted in York after all, the Evening Press can reveal.

The Government has admitted parts of the city's housing market may be "overheating".

Now Housing Minister Tony McNulty has revealed the situation in York will be kept under "constant review" - just four months after excluding the city from a scheme to limit the "right-to-buy".

The maximum reduction available to tenants who have lived in their home for many years could be slashed by up to £22,000.

Mr McNulty made his remarks under pressure from city MP Hugh Bayley in a House of Commons standing committee meeting.

The Labour MP asked why York had been left out of the scheme, when areas which had been included faced less severe problems. These included Reigate and Banstead, in Surrey, which have a significantly lower demand for social housing.

According to Mr Bayley, City of York Council was losing homes under "right-to-buy" at a rate of 170 properties per year.

The average discount being picked up by buyers is £23,000.

Yet only 110 new social and housing association homes were being built each year to replace them - leading to a shortage in the sector.

Mr Bayley said: "It is not the case that the whole of the south-east has a problem that it does not share with other parts of the country."

Mr McNulty replied: "This will not necessarily be an issue only for London and the south-east.

"We will keep under constant review the position in York and other areas.

"York and other parts of Yorkshire may be overheating, in relative terms, in their local economy." Campaigners in the city had hoped to be included in the Government's original review of the "right-to-buy", which was introduced by former Prime Minister Margaret Thatcher.

But it was not listed among 42 property hotspots announced by Deputy Prime Minister John Prescott last June.

In these areas, the maximum reduction was cut from £38,000 to £16,000.

Updated: 11:01 Saturday, May 17, 2003