FAMILIES are being priced out of the housing market in Dorset as property prices rise.

New figures out today from the National Housing Federation’s (NHF) Home Truths 2010 report warns that the average house price in Dorset is £238,426 – 13 times the average salary of £18,689.

The federation also claims a house buyer would need to have a salary of £61,310 to secure a mortgage on the average house at a ratio of four times the annual salary.

Homeless campaigner Angie Barnes said: “It is a ludicrous situation.

“I don’t know how there can be any justification for such prices.”

She added: “People are never going to be able to afford houses.

“Some people can’t afford to rent let alone to buy somewhere.”

The NHF has drawn up an affordability league table for Dorset which puts West Dorset in the fourth most unaffordable spot, with the average house price being £242,066.

In 10th place on the league table is Weymouth and Portland, which has an average house price of £189,438.

This figure is more than 10 times the average Weymouth and Portland income of £18,741.

The NHF’s report warns that house prices increased by eight per cent in the year to June 2010 and that a 90 per cent mortgage on an average home now requires an income of more than £54,000.

The report was being launched at a reception at the Jubilee rooms at Westminster this afternoon. Mid Dorset and North Poole MP Annette Brooke and North Dorset MP Robert Walter were due to be at the launch, as well as representatives from Purbeck District Council and West Dorset District Council.

The federation claims the housing crisis comes in the wake of the Government’s decision to cut the national affordable house-building budget by 60 per cent in last week’s Comprehensive Spending Review.

The Federation is warning that while affordable housing is clearly no longer a priority for the Government, it remains a priority for thousands of South West families unable to afford a home.