EXPANDING companies could be forced out of the county by shortages of industrial land, it is feared.

Commercial sites are in increasingly short supply as developers and councils cash in on soaring house prices and use old industrial sites for luxury homes.

Goadbsy & Harding Commercial managing director Chris Heighway said: "This is not a problem unique to Poole but it has been accentuated by the regeneration priorities. There now appears to be far too great a dependency on brownfield provision. It is seriously putting at risk prospects of inward investment and strategic expansion."

Firms could relocate out of the area if they could not find suitable land on which to build new factories and warehouses.

"Land values have risen by 50 per cent over three years to approaching £500,000 per acre," he added.

Mr Heighway voiced his warnings at the Royal Bank of Scotland Property Dinner at the Hermitage Hotel, Bournemouth.

Royal Bank of Scotland group chief economist Jeremy Peat said he expected interest rates to remain on hold until next year. But the present surge in property values was ultimately unsustainable, he warned.

"The property market looks quite buoyant for some time to come but at some stage the consumer has to claw back. Enjoy it the market while you can because it won't last forever," he said.

The bank will next month launch a £200 million property fund for this area.

Commercial director Greg Jones said it had already loaned £50 million over the last seven months.