Councillors warn that bringing in rules to stop new houses built in the Scarborough Borough being used as second homes or holiday lets could have unintended consequences.
Borough Councillors voted this week to carry out a feasibility study into what's called a "Primary residence Scheme"
It would add a restriction on new build properties to stop them being sold as second homes.
Councillor Liz Colling says the last time the authority looked at the issue of second homes the data that came back wasn't very encouraging for the policy.
Councillor Phil Trumper says there could be adverse effects on older properties.
Similar schemes have been tried elsewhere in the country including in St Ive's in Cornwall.
Councillor Colling says early reports in the to the effects of that scheme have raised some questions, including around the impact on the level of "section 106 monies", payments developers make to provide community and social infrastructure.
Council officers are preparing a feasibility study report on the idea which will be presented to the councils Planning and Development Committee in March.
- RELATED STORIES : Council to Investigate New Home Restrictions in Scarborough Borough