Two historic shepherd’s houses will be sold by York City Council.
But Grade II listed buildings will not be allowed to become holiday rentals after residents raised concerns.
To ensure the properties would not end up on websites such as Airbnb, the council must sell the properties on 250-year leases with a clause limiting use to private residences.
The clause should not affect the amount for which the council can sell the properties, according to the officers.
A wider debate is raging in the city over the impact of short-term vacation rentals on the housing crisis and community relations.
The cottage at 159 Mount Vale backs onto Knavesmire, while 103 Heslington Road backs onto Walmgate Stray. Both date from around 1840.
The Strays of York are the remnants of much larger common land on which the city’s hereditary freemen had, from time immemorial, had the right to graze cattle.
The sale of the cottages was considered alongside a broader transfer of council assets to community groups in the town.
Authority has historically transferred assets to the community where a group is able to use the asset to improve community or social outcomes.
The Rowntree Pavilion and Rowntree Park tennis courts are both leased to the Rowntree Park Sports Association, while the Poppleton Community Center is transferred to the trustees of the Poppleton Community Trust.
Chapman’s Pond at Moor Lane and land at Dringhouses and Clifton Park are also being transferred to local groups.
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