PLANS to massively extend the number of affordable houses in York have been branded "unrealistic" and "fundamentally flawed".

Developer Matthew Laverack, of The Architect Shop, based in Lord Mayor's Walk, claims a proposal to make "the majority" of new developments include 50 per cent affordable housing would actually reduce the amount of social housing in the city.

The proposals are one of the main points of the Labour group's local election manifesto.

Mr Laverack said: "The proposals presume that the house building industry can afford to hand over half of its product at less than cost price, when it cannot.

"There is a limit to the amount of affordable housing that can be provided, and an increase from 25 per cent to 50 per cent will make many schemes unviable."

Mr Laverack added: "The net result of the increase will be that schemes do not proceed and the long-term consequence will be a reduction in affordable housing, rather than an increase."

Mr Laverack claimed there was a risk of all developments stopping if the council continued increasing affordable housing quotas.

Andrew Stone, of Wetherby Road based AJS construction, said affordable housing stocks were affected by first-time buyers selling them on quickly, at a profit.

He said: "No matter how many affordable houses they build, about 30 per cent are sold on within 12 months. That is something that needs looking at carefully."

Council leader Coun Dave Merrett, said that under the proposals both landowners and developers would still make money.

The council would expect the 50 per cent policy to be reflected in the sale price of land to developers, he said.

Coun Merrett said: "Values of land are determined by the market. The definition of the planning use is determined by the council through the local plan. We can alter the value of land through changing its designated use.

"The developer must take into account the affordable housing requirement - any developer has to do that - therefore one would expect the land to be offered at a lower price than under the current rules.

Updated: 08:54 Friday, March 21, 2003