A DORSET council is heading for a major housing crisis by meeting only a tenth of the need for affordable housing according to a new study.

The survey by Bournemouth University found that the number of people classed as unintentionally homeless in North Dorset grew by three times the national average between 1996 around 2001.

The average homeless rate in England grew by 11 per cent during this period. In the South West it was 25 per cent and in North Dorset 34 per cent.

Now an action plan is being drawn up to reduce the rates.

North Dorset District Council commissioned the university to carry out a housing needs survey as part of its requirement to come up with a homelessness strategy.

It found that North Dorset had a higher than average rate of family breakdown, an affordability problem in that the average house price in 2002 was £135,000 but 50 per cent of households had an annual income below £20,000 and a housing profile which showed plenty of executive homes being built but very few starter homes.

The study said: "The housing market excludes many families and single- person households who are currently seeking access to local housing.

"Access to home ownership is beyond the reach of 72 per cent of concealed households forming within the next year identified in the survey."

It added: "Existing affordable housing supply is significantly lower than total affordable need and an additional 626 units per year would be needed to meet all needs.

"This is significantly more than delivery from the from the current affordable housing programme and 5,634 units are needed in addition to the 3,930 supply from existing stock re-lets to meet the total scale of need to 2011.

"The council is currently only able to meet a tenth of the need for affordable housing identified by the study."

The matter is to be discussed by the Cabinet committee on July 31.