HOPES have been raised that affordable housing could be built in North Yorkshire as a result of changes in the discount of council tax on second homes.

Jeremy Walker, chief executive of North Yorkshire County Council said in a report to its executive, that as a result of the decision to reduce the discount, £1,947,000 would be available.

The authority had decided that the money should be invested in providing much needed low-cost homes across the county, and to support community strategies and partnerships.

Mr Walker said the executive had also agreed that 80 per cent of the additional revenue should be re-invested in the districts such as Ryedale, from which it is raised.

Now a new capital fund is being set up to provide the homes, which will have an estimated value of £4m and be matched by the Housing Corporation.

Agreement has been reached between the county council and the district council that part of the 80 per cent is to be re-invested in specific districts to be used to support borrowing, said Mr Walker.