A new affordable housing scheme aimed at helping first time buyers in the York area to get a foot on the property ladder will be launched in the new year.

It will target the 'Golden Triangle' area between north Leeds, Harrogate and York, where house prices tend to be high and many local people find it difficult to buy a home.

The Homebuy Plus scheme, which will be run by Northern Counties Housing Association, is the result of a three-way partnership between City of York Council, Harrogate Borough Council and Leeds City Council. The scheme, which is funded jointly by the partnership and Northern Counties Housing Association, will run between January 2007 and March 2008. During this period it will help around 60 households to buy a home on the open market that they would otherwise be unable to afford.

Successful applicants will receive an equity loan of between 35 and 45 per cent of the purchase price of a home and will be required to contribute the remainder of the price through a mortgage and/or personal savings. No interest or rent is payable on the equity loan, although the sum will need to be repaid when the applicant sells the property.

Residents in the Golden Triangle area are getting a better deal than those accessing Homebuy schemes in other parts of the country who are eligible for a discount of just 25 per cent – hence the 'Homebuy Plus' title.

Steve Waddington, head of housing services for City of York Council, said: "We are delighted to be a part of this exciting scheme, which will bring major benefits to first time buyers in York and the wider Golden Triangle partnership area."

Since the partnership was formed, £7.5 million in funding has been secured from the Regional Housing Board and will be allocated between now and 2010/11. The partnership will also be delivering other schemes aimed at getting people into home ownership and helping to relieve the burden on local authority housing provision, as well as initiatives that will increase the number of affordable properties available for rent.

An information pack, containing information about the scheme and an application form, can be obtained from Northern Counties Housing Association on 0845 6037604.