THE Government has approved a policy restricting the building of second homes and holiday cottages in the Yorkshire Dales.

Under the Yorkshire Dales National Park's restricted occupancy policy, nearly all new homes - including barn conversions - will be reserved for dales' residents.

The authority hopes the move will mean local people can afford to buy property, previously sold at inflated prices because of the demand for second homes.

The national park's policy has received backing in a report by Government inspector William Carlow.

Peter Watson, the national park authority's head of planning, said: "The main thrust of the inspector's report is that he supports the authority's idea of limiting new housing development to that which is needed by local people.

"At the moment, most house building in the Yorkshire Dales National Park is open market - meaning anyone can buy it.

"There is no logic in meeting open market demand in the national park because we can't build enough houses to bring prices down to levels affordable for local people, without destroying the landscape.

"So the obvious approach is to build homes only for people who work here."

Mr Watson said there would be no occupancy restriction on the 10,000 homes already built in the park.

The inspector's report recommended smaller, cheaper houses should be built in national park villages with services.

A similar attempt by the national park authority to restrict occupancy was overturned by the last Govern- ment in 1996.

The report also called for the creation of more and better paid rural jobs.

Mr Watson said: "The two policies, restrictive occupancy and better employment opportunities, should enable more people to stay within the national park, rather than leaving to find work and affordable housing elsewhere."

The inspector's report will be considered by the authority's planning committee next month.