THE occupation of the former White Swan Hotel highlights the issue of empty properties in York, the city's Green Party said today.

Spokesman Andy D'Agorne said the squatters who had occupied the Piccadilly eyesore were evidence of the need to tackle affordable housing and homelessness in York.

Mr D'Agorne said the Green Party wanted to see City of York Council take a more active role in identifying potential residential space above shops or in vacant premises in York - and then take action to make it available as affordable rented accommodation.

About two dozen squatters have occupied the former hotel - one of York's most notorious empty buildings.

They have renamed it the Rainbow Peace Hotel and said they planned to clean and decorate the 50-room five-storey property.

They also said they planned to open parts of the former hotel, restaurant, bar and nightclub to the public. The building has been closed for about 20 years.

Mr D'Agorne said: "With many people unable to afford to start buying a home in York, it is a scandal that developers should keep a prominent building empty for so long.

"Greens believe that bringing buildings like this back into use for rent at affordable rates, even for short tenancies, would help reduce the pressure to build on the green belt and city open spaces."

Coun Steve Galloway, Liberal Democrat leader, said: "We don't condone squatting other than perhaps as an occasional way of making a point.

"In this case, we think the point is well made. This is the kind of property which should be brought into use. Everyone in York finds it totally extraordinary that an absentee landlord can allow a property like this to remain unused for so long."

Coun Dave Merrett, Labour leader, said: "Labour has achieved a substantial amount of additional affordable housing above premises in the city centre. Walmgate, Rougier Street and Micklegate spring to mind.

"We will continue to do so, but to achieve this we have to work with owners. In this case, where the owner has been uncooperative, it has been much more difficult to achieve."

Coun John Galvin, Conservative leader, said: "You can only go so far as the people who own the property will allow you to do so.

"In the past there has been active efforts to try and get property above shops released for flats. In this case, I wouldn't necessarily disagree with their (the Green Party's) sentiment."

Updated: 10:41 Tuesday, April 22, 2003