A LOCAL authority has agreed to keep the cost of new affordable housing at the same rate.

South Lakeland District Council in Cumbria said it was freezing the cost of affordable homes to help fend off a housing crisis.

Councillor Jonathan Brook, portfolio holder for housing and development, said: "There remains an acute need for affordable housing in our area.

"Affordable housing is at the heart of the authority's priorities and whilst we understand that building costs have risen we need to balance that against the difficulty purchasers have in buying their homes."

Several factors had convinced Councillor Brook that the rate should stay the same, he said.

They included a drop in the average income across the district and the fact that 3,200 households were in need of affordable housing in the district.

"The housing market will benefit by holding affordable house prices at the current level", said Councillor Brook.

The cost of affordable housing is based on current market value minus a discount - set by the local authority - from the developer.

It is a condition of any development that a percentage of affordable housing is included.

Affordable homes are kept affordable into the future by applying the discount to all future re-sales, said the local authority.

The current affordable housing price for a three-bedroomed house is £110,000, it said.