COUNCIL leaders are demanding that more cheap houses are built to help low-income people and families.

They want to put conditions on land sales to make developers set aside 25 per cent of a site for affordable housing.

The rules will apply to all applications for residential development of more than 25 houses that the council receives from January 1.

Councillors on the executive heard that builders have erected only 200 of the 700 affordable houses the borough needs by 2006: and only another 41 are in the pipeline.

Affordable houses should not be cheaper simply by being smaller, they say. They could be subsidised for rent or shared ownership at below market levels, allocated on need and controlled by a housing association; alternatively, they could be sold or rented on the open market at a discount.

Such homes should be integrated into the whole development to promote social inclusion, not separated from houses sold at full market price, unless in exceptional circumstances.

Bosses admit this may reduce the amount a developer is willing to pay for land, but think Bury is sufficiently attractive to retain interest. They also say they will be flexible.

The executive's recommendation will be considered by full council on Wednesday (Nov 5).