New regional plans could mean Preston will have to provide 507 new properties a year – 327 up on the current 180.

Preston Council leader Coun Ken Hudson fears the city will fail to reach this target given the problems in the housing market.

Statistics show prices in Preston dropped by 17.8% in the first quarter of this year, with the average price of a property in the city down to £130,704.

The new policy also says around 20% of the 507 homes must be affordable.

Coun Hudson said: "If we get 500 houses they will all be affordable as we won't be able to sell them.

"I'm not sure we require that number of homes. It's excessive. If we built 507 houses, in theory we would have more empty houses in the city.

"In practice, only affordable housing will be built by developers which will be sold off to housing associations while the remaining houses will not be built."

This view was echoed by Neil Cartwright, the council's housing and development portfolio holder, at a cabinet meeting.

He said: "Housing sales in the first four months of this year are down from 4,800 to 2,900. The market has died completely."

The council produced a new housing document to tie in with the proposed Regional Spatial Strategy outlining housing plans.

This requires 70% of new housing to be built on previously developed or 'brownfield' sites while developments of 10 or more properties must provide at least 10% of energy from renewable sources.

Opposition leader Coun John Collins (Labour) said 10% was too low and wants the council to do more to fill empty houses rather than build new ones.

Figures show there are just 21 fewer empty houses in the city (2,638) than there were last year.

Coun Collins said: "They should do a lot more with the empty homes. We don't think they are doing enough on energy and will be calling it in."

Michael Gallagher of the North West Regional Assembly, which put together the plan, said: "A short term downturn in the housing market should not replace the need to plan for properly located, well designed housing to meet those long term needs."

A consultation on the new housing document ends on August 8. It can be accessed at the website www.preston.gov.uk

Call 01772 906718 for more information.