PLANS to combat York’s housing crisis by creating a housing development company were given the go-ahead by council chiefs last night.

The company, the first of its kind wholly-owned by City of York Council, will use the authority’s own land and sites in a bid to deliver more homes, more quickly.

It aims to help those residents struggling to buy a house on the open market or pay an affordable rent, while also generating cash to be reinvested into council services.

Members of the council's executive committee last night approved a report on the scheme, after hearing that the average house price in York is now 9.6 times higher than the average salary.

Limited supply and high demand is forcing up prices, making it difficult for key workers, first time buyers and young families to buy a home.

Cllr Sam Lisle, executive member for housing and safer neighbourhoods, told The Press: “Historically we have sold land to a developer for a capital receipt, but we can get more value if we develop sites ourselves, offer more affordable options for those in need and have more control to tackle the housing shortage.

“We would build some homes to sell to get capital, some to sell as affordable housing or shared ownership and some to rent.”

Cllr Lisle said the latter would be aimed at key workers who are put off by the high costs in York but are not eligible as council tenants.

He added: “We need to think more strategically about how we can best utilise our land assets.

“A council-owned housing delivery company provides a fantastic opportunity to deliver a real step-change in affordable house building in York.”

A number of existing council-owned sites will be considered for new housing developments by the company. An outline five-year business plan will be drawn up providing feasibility work for the sites, as well as cost and revenue analysis and funding arrangements.

The expectation is that some sites will be delivered in partnership with other organisations in order to share resources, investment, costs and risks whilst benefitting from their commercial and technical skills.

One of the sites the council will redevelop is Lowfield Green in Acomb, on the site of the former Lowfield School, where 140 houses including social rented homes and bungalows for older people are to be built.

Instead of selling the land off to a private developer, the authority is planning to develop the housing estate itself and the £18-£20 million project will bring in money once the houses are sold or rented out.

Others include the former Askham Bar Park and Ride, Burnholme College and Woolnough House nursing home.

Councillor David Carr, leader of City of York Council, said: “This is a first for York and a clear statement of intent to help meet the many variations of housing need in the city."

Cllr Janet Looker, Labour leader on the council, told last night's meeting: "This is a significant step forward for the council to see how we can increase support for the housing difficulties we all know there are.

"But I am slightly concerned we are being rather conservative in our aspiration for the social need end of the sector. I have got in my heart the mother of children reported in the media spending Christmas in a b&b and don't think this model will help them. I want to see us being more proactive and focus on trying to relieve these families who find themselves homeless this time of year. "