A MAJOR council housing development in York has been hit by some delays as a result of the pandemic - pushing the cost up by £2.1 million.

But City of York Council says that thanks to rising house prices in the city, the homes at its Lowfield Green site are set to bring in around £3 million more than they expected.

Work continues of the site where 165 new homes are being built - 56 of them affordable, 19 in a communal scheme, six self build and the remaining 84 sold at market price.

All homes up for sale in the first phase have been reserved, with £1.8 million of sales in the first four weeks. The second sales phase saw key workers get priority for the shared ownership homes and these are all reserved.

The development has been delayed, according to a council report, which says: "Much of the impact was due to the pressure from the Covid pandemic, including delays from services subcontractors being placed on furlough for extended periods and the realities of working in new ways to remain Covid secure."

This has increased costs from £26.6 million to £28.7 million.

But the report adds: "House prices have risen since the valuations undertaken in 2018 and the current property valuations indicate that there is likely to be an increase in sales income across the Lowfield site of [around] £3 million."

It says: "The large village green and play area will be completed and open to the public in the summer 2021 providing valuable community focus and amenity space for residents of Lowfield Green and the surrounding area."