LEADING property and development companies in York today announced that they would research ways of stopping the "leaking" of affordable housing in the city.

York Property Forum (YPF), which consists of property professionals such as surveyors, estate agents and developers, wants a supply of cheaper homes that are not swamped by more expensive prices on the open market.

The decision was taken following a meeting with City of York's planning department which has identified a shortfall of 954 affordable homes per year over the next five years.

The forum has agreed to actively identify ways of preventing homes being sold on at prices linked closely to the ballooning general market prices in the city.

Housing associations in the city already insist on clauses that whoever buys their cheap property can only sell it on at between 75 per cent and 80 per cent of market value throughout the lifetime of its long lease.

But the swelling values in the York market have meant that even 80 per cent puts properties out of the financial reach of most people who desperately need more affordable housing.

And increasingly, housing associations will have to rely on affordable rented homes rather than homes for sale.

It all adds to the increasing pressure on developers from the City of York Council to increase the proportion of affordable homes they build on any new development project

At present, any project involving more than 24 homes means that the developers are expected to set aside a quarter as affordable homes for housing associations.

But the council now wants to see developers allocating half their schemes for affordable housing on projects involving more than 15 units.

The forum concedes a need to increase the quota, although arguing that 50 per cent will make any schemes financially daunting, "in which case everyone will be the loser," said Andrew McBeath, YPF spokesman, who insisted that the issues of quotas and leakage were separate.

He added: "Essentially a certain percentage of new houses are priced competitively to allow people on low incomes to get on the property ladder".

However, when the property can be sold into the open market, the market has often moved, and results in the property usually being sold for a higher price, which can make it unaffordable for other first-time buyers or people on low incomes.

"We are keen to identify ways in which houses that have been built specifically for people that qualify under the policy definitions remain within their reach when they are re-sold", said Mr McBeath.

"We are compiling a brief from which a study can be developed and hope to publish the results by the end of the year.

"Any strong stipulations will be tricky to police and at this stage we don't know the implications of creating what would be another tier in the property market, but this is what we will try to find out."

Updated: 09:03 Tuesday, April 15, 2003