A MAJOR cash injection has been agreed to try and fight back against the rural housing crisis in the Yorkshire Dales.

The sum of £250,000 has been earmarked for the project by Richmondshire District Council.

Members have agreed to allocate cash from their New Homes Bonus to the Mercury Housing Co Ltd – a new trading company set up by the authority to provide more homes for rent which local people and families can afford.

The money could be used to build new houses or buy existing homes to rent - or make investments in site purchases.

Tackling the lack of affordable housing and the exodus of young people from the area was one of the key messages from the district’s Rural Summit in November.

The Chartered Institute of Housing is providing a financial report analysing the options available to the council - which is currently working on a business case for Mercury Housing for approval at a future meeting of the Corporate Board.

It is hoped the new company will allow the council a more flexible way to work on its own, with local housing associations and the National Park Authority, to deliver new homes and housing.

The authority’s leader, John Blackie, said: “We need to deal with the increasingly worrying lack of homes that in particular local young families can afford in our rural and deeply rural communities in the district – and we are tackling this innovatively.

“Earmarking this £250,000 will start the ball rolling – and we hope it will see the district council create homes for local families who otherwise cannot afford to stay in the very communities where many will have been born and brought up amidst. “

He added: “We are committed to attracting new young families, attracting back those that have left the district and keep more of those who are already here.

“It will be good for the economy of our rural areas and offer a much brighter future for their communities.”

*The New Homes Bonus comes to the authority from central Government and acts as an incentive to promote housing growth. It receives an annual grant for each additional home built - including affordable homes. By April this year Richmondshire’s share will have amounted to £751,662.