TONY BLAIR has promised the Government is working to provide more affordable family homes in York.

During Prime Minister's Question Time, city MP Hugh Bayley asked what plans were in store to increase the supply of affordable housing, particularly family housing with gardens, in house price hotspots, such as York.

Mr Blair told Mr Bayley that Gordon Brown's scheme for shared equity homes was a "major step forward" for those seeking to get on the housing ladder.

In his pre-budget report, the Chancellor revealed that three major lenders - Yorkshire Building Society, Nationwide and HBOS - had signed up to offer HomeBuy mortgages to first-time buyers. Under a shared equity scheme, buyers can take a 75 per cent mortgage, with the remaining 25 per cent covered by an equity loan from the lender and the Government.

The Government hopes the scheme will create an extra 100,000 homeowners by 2010.

Building firms will also be able to offer shared equity schemes to home buyers.

Mr Blair said the scheme would "allow many couples who want to get their feet on the first rung of the housing ladder, but who may not be able to afford the full 100 per cent equity, to build up their equity stake over time".

"Together with the very considerable investment in social housing, that will make a difference in my honourable friend's constituency and elsewhere," he said.

Mr Bayley said: "Families in York need better-quality affordable housing, and one of the Government's solutions to this problem is to widen the opportunity for people to own their own home.

"York has gained 10,000 extra jobs since Labour came to power, which is good for the city, but it has driven up house prices and rents.

"Many York people are being priced out of their own city, so I am glad the Government is tackling high housing costs in the north of England. I want York to be one of the first cities to benefit from the Government's extra help with affordable housing."

At York estate agents, Hunters, shared equity schemes were greeted positively by director Keith Hollinrake, who said they offered a means of allowing first-time buyers to get into the market.

"We have sold numerous properties on shared equity and there are always people looking to snap those properties up," he said.

"It gives people a chance to get involved and get their own property. Once they are on the ladder, they can progress from there."

Updated: 10:06 Saturday, December 10, 2005