Work on plans overseeing development in the Selby area until 2040, which has been taking place for the last six years, is set to be stopped.
Members of North Yorkshire Council will vote on whether to halt work on Selby Local Plan, which would set out the preferred location for new housing and business sites in the area, next week.
A report to councillors advises that the plan, which was started by the former Selby District Council in 2019, cannot be submitted to the Secretary of State for final approval without further time and money being spent on the document.
Council staff say the emerging local plan for the Selby area works on the assumption that 368 new houses are needed every year to meet demand.
However, using calculations in the National Planning Policy Framework (NPPF), which was released by the Government in December, between 483 and 561 properties a year would now be needed, meaning a shortfall of up to 2,895 houses over the plan lifespan.
For the plan to be approved, further work would be needed to allocate new sites for housing, including further public consultation exercises.
Council officers estimate that it would cost around £180,000 just to ensure the plan is legally sound.
Nic Harne, corporate director for community development, said in a report to members: “Taking into account the up-to-date context for the preparation of the Selby Local Plan, most notably the implications of the new NPPF, it is the view of officers that work on the plan should be halted.
“Irrespective of whether the plan is halted or not, the land supply position will be challenging and there will need to be a proactive approach to the delivery of sites.”
The new NPPF calculates that 4,077 houses should be built in North Yorkshire every year to meet need.
Previously, the county had a target of 1,300 properties, although the number built each year averaged around 2,800 over the last ten years.
By halting work, officers say it will enable resources to be used to prepare the new North Yorkshire Local Plan, which is due to guide development in the county from 2028.
The move to stop work on the plan had the support of the council’s development plan committee and the Selby and Ainsty area committee, officers say.
Mr Harne added: “Although it was seen as a disappointing outcome, both committees acknowledged the position the plan was now in with the publication of the NPPF.
“It was also recognised that work undertaken to date was not wasted and would contribute to supporting the preparation of the new local plan for North Yorkshire.”
Members of the council’s executive committee will vote on the future of the plan on Tuesday.