SCORES of homes in a model village near York have been sold to private owners over the past five years, a report revealed today.

The result has been a major boost to New Earswick, which last year celebrated its 100th anniversary.

Lord Best, director of the Joseph Rowntree Foundation, says people have a better perception of the 1,000-home estate, the value of property has been rising and more families in work have been moving in.

The report, titled Rebalancing Communities: introducing mixed incomes into existing rented housing estates, by Graham Martin and Judi Watkinson, was published today by the foundation.

It says that in 1998, the Joseph Rowntree Housing Trust decided to introduce a new scheme at New Earswick called SAVE (Selling Alternate Vacants on Estates).

Under this scheme, alternate vacancies have been sold on the open market, with the proceeds being used to build replacement homes for rent.

"This and other low-cost home ownership schemes mean that one in five properties in the village are now in shared ownership or full home ownership," the report said.

The study added that SAVE schemes were designed to attract middle-income households on full mortgages, likely to be young families.

This contrasted with statutory "right-to-buy" schemes, where purchasers tended to be older, existing residents buying at a large discount who sometimes did not have the income to maintain the property.

Looking at SAVE schemes at a number of locations, the study said the feedback on the social consequences of increasing the mix of tenure and incomes on estates was "very positive".

It had led in some cases to a better reputation for stigmatised neighbourhoods among outsiders.

Lord Best said the views of other social landlords surveyed was similar to the trust's own experience of SAVE in New Earswick.

"There has been a marked and very welcome improvement in perceptions of the estate, property values have risen and more families in work have been moving in.

"It might seem strange that we should sell to save, but this scheme not only creates a mixed-income community but also, by recycling sales proceeds, finances new homes for rent elsewhere."

Updated: 09:18 Wednesday, April 30, 2003