A NEW, multi-million pound affordable housing initiative is offering a lifeline for hundreds of people across North Yorkshire.

The county council's executive has approved the first phase of a ground breaking scheme to build more than 130 new affordable homes in 20 different schemes.

The scheme was first mooted a year ago and the approval follows months of detailed negotiations with the Housing Corporation and district councils.

In Hambleton the county has agreed to spend more than £500,000 on part-funding four schemes in Meadow Lane, Northallerton, Hambleton Avenue/ Hambleton Place, Thirsk; Crabmill Lane, Easingwold and East Lea, Topcliffe. These will provide 22 houses, all for rent.

In Richmondshire they include four schemes, two in Richmond, at Nuns Close and Gallowgate, and others in Bainbridge and at Hudson House in Reeth.

They will provide 27 new homes, all for rent and the county council will provide more then £400,000 to part-fund them.

Council leader John Weighell said: "What we are doing is using some of the extra revenue from council tax on second homes to finance capital borrowing which can then be used to secure additional match funding from the Housing Corporation and social landlords.

"The lack of affordable housing is a growing problem facing communities across North Yorkshire, not least for young people and those on lower incomes.

"Altogether, this initiative should generate new capital resources of around £15m over three years. We look forward to a second phase of the programme next year."

Rick Elliott, regional head of investment for the Housing Corporation, said: "The corporation's match funding will at least double the number of new houses which would otherwise have been built."

The Government will now be asked formally to approve the borrowing proposal and once the Housing Corporation's formal agreement to these proposals has been received, work on the schemes will begin.