SMALLER scale housing developers have been told the pressing need to produce affordable housing outweighs their ability to produce properties that are bespoke for communities.

The warning came as developers accused Hambleton District Council – which has adopted a 40 per cent affordable housing target on developments – of creating a favourable climate for national rather than local housebuilding firms.

Councillors across the county say the need for more affordable housing is one of the most pressing issues, with average house prices in districts being between 7.6 and 11.2 times the average salary. The friction between developers and planners came into focus as the authority’s planning committee rejected a scheme to build 17 properties in Northallerton.

Members heard council officers had been unable to reach an agreement with Yorvik Homes on the number of properties on a Stokesley Road development which should be provided to people whose needs are not met by the housing market.

Planning officers said the developer’s offer of 23.5 per cent affordable housing, or four properties, related to the firm’s insistence on achieving a 20 per cent profit on both affordable housing and properties which would be sold on the open market.

Yorvik’s agent Stuart Shapley said the 40 per cent affordable housing target favoured national housebuilders, that benefited from economies of scale. He said: “In contrast to national housebuilders we don’t use standard layouts or house designs. Our designs are bespoke to ensure they reflect the local character.”

Most councillors said they were unimpressed by Yorvik’s arguments and backed rejecting the application.

Councillor David Webster said: “The applicant is putting forward the point that because he is a smaller builder, he should be somehow treated differently from everybody else. Everybody should be treated the same no matter how big their operation, whether they are building one house or a thousand.”

Councillor Bridget Fortune added: “Anybody set to purchase a piece of land for development would know the 40 per cent affordable housing figure before they started.”