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

The county council's executive has approved the first phase of a ground-breaking project to build more than 130 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 in part-funding four schemes in Meadow Lane, Northallerton; Hambleton Avenue and Hambleton Place, Thirsk; Crabmill Lane, Easingwold; and East Lea, Topcliffe. These will provide 22 houses, all for rent.

In Richmondshire, four schemes have won support - two in Richmond, at Nuns Close and Gallowgate, and others in Bainbridge and at Hudson House, in Reeth.

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

In the Harrogate district, ten schemes have been agreed at a cost to the county of £880,000. The largest, at Ripon House, Ripon, will provide 25 homes for a mix of rent and discounted purchase.

A further nine sites will provide 16 affordable homes at East Park Road, Spofforth; South View, Arkendale; Crowgarth, Skelton on Ure; Harewood Road, Harrogate; Spofforth Lane, Little Ribston; Manor Road, Killinghall; Carrside, Great Ouseburn and Brackenwell Lane, North Rigton.

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. All together, this initiative should generate capital resources of about £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.