BOURNEMOUTH'S affordable housing shortage is now so bad that the town is comparable with the "worst parts of inner London", a report has warned.

A study of Dorset's housing market found that Bournemouth had a "significantly higher" level of demand than anywhere else in the county.

And it warned: "The overall level of housing need is at a level hardly ever found outside the worst parts of Inner London."

Additional research carried out by Bournemouth council shows that high housing prices are deterring teachers and other key workers from moving to the town.

One primary school head said: "It is difficult to attract teachers to Bournemouth as they know they will probably not be able to get on to the housing ladder.

"Young teachers whose salaries begin at around £21,000 will not be able to buy, possibly even when married. For single teachers it is totally out of the question. More senior colleagues, earning up to £35,000, will also look twice before considering Bournemouth."

The head of a local secondary school agreed: "On a few occasions, I have offered positions to teachers who have then declined the offer, stating that the cost of housing was the reason."

Nigel Hedges, president of Bournemouth Chamber of Trade and Commerce, echoed the concerns of the public sector. He told the Echo: "The problem is that we have London prices, but not London wages."

Much of the blame is being put on the planning system, which currently only allows Bournemouth council to require an element of affordable housing on developments of 14 or more properties.

Under this system, just 122 of the 1,382 new dwellings built in the year ending March 2007 could be classified as "affordable housing".

This is officially defined as housing, including social rented and intermediate housing, that is provided to specified eligible households whose needs are not met by the market.

Now, in a bid to redress the balance, Bournemouth council looks set to dramatically increase the affordable housing contributions it seeks from developers.

Against the advice of some local planning agents, who fear it will stifle development, the cabinet is being recommended to seek a 40 per cent affordable housing contribution on all new residential sites.

Cabinet members will consider the recommendation on Wednesday.