POOLE is facing a housing crisis after being named the most unaffordable place in the UK to buy a home.

Property prices are 12.4 times the local income, says a new report ranking house prices by local authority area.

Many people, including first-time buyers and key workers, look set to desert the area in a bid to get a foot on the property ladder, meaning local services are also threatened.

The shock statistics have been published in a joint report by the National Housing Federation and Chartered Institute of Housing just days after we revealed demand for homes in spots such as Sandbanks had soared as well-off families seek safe havens from the London terror threat.

Portsmouth footballer Sol Campbell is believed to have snapped up a £2million property in the town and a mansion in Panorama Road recently sold for just under £10m.

But the rich and famous neighbours come with a penalty as property prices soar.

Young Poole residents told the Daily Echo they could not afford to buy in the town.

Gemma Gaughan, 21, of Ringwod Road, said: "We can only just afford to rent a place. The houses aren't that amazing anyway. You don't get the best value for your money."

Her partner Lee Saunders, 28, added: "The council paid for us to put a deposit on private rented accommodation because there are no council houses left."

Sharon Talbot, 31, from Penn Hill, said: "I'm renting because it's just too expensive to buy on your own."

According to the report, South West's Housing Timebomb: Affordability and Supply 2006-2011, the average house price in the region will rise to nearly £300,000 by 2011.

Derek Cash, from the National Housing Federation, said: "Unless some drastic action is taken, the outlook is only going to get much worse.

"More and more people are priced out of buying. Young local people and key public sector workers will continue to move to cheaper parts of the country to ease their housing problems, making essential public services increasingly vulnerable."

Cllr Mike White, the Borough of Poole's cabinet portfolio holder for housing, said the council supported an affordable housing programme in partnership with housing associations and the housing corporation.

He added: "Across 2004-6, the council was successful in securing investment of £34m which has provided new homes for over 600 households.

"This was one of the largest programmes in the South West region. Building on this outstanding success, the council has secured a further £45m for 2006-8 which will deliver a further 286 new homes for up to 746 people."