CITY Of York Council will be able to bid to borrow from a new £500 million Treasury fund set up to back council house building.

According to a government announcement this week, York is on a list of around 90 “high affordability pressure” English areas - where there is a big difference between social and private rents - which will be eligible to bid for new borrowing under the scheme.

Cllr Helen Douglas, the city council’s executive member for housing and safer neighbourhoods, said:

“We welcome this announcement as it will support our long-term plans for housing development, and in particular ‘affordable housing’, which go to executive next month.”