Crisis warning over house prices

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Rocketing house prices in London are creating a social housing crisis, the Housing Federation has warned.

Its report showed first-time buyers need to earn more than £100,000 a year to buy an average priced home - of £318,000 - in 25% of London's boroughs.

But it said an estimated 330,000 families were registered on waiting lists for social housing in the city.

According to the federation this has grown by 57% in five years with the highest levels in Newham, east London.

Health problems

The report, Home Truths London: The real cost of housing 2007-2012, showed there were almost 30,000 households on the waiting list for Newham last year.

Top five boroughs Newham - 29,574Haringey - 24,939Lewisham - 17,535Barnet - 16,470Brent - 16,398

In the same period the waiting list in Barking and Dagenham, east London, showed the biggest increase, rising 250% to 7,689 households.

Only in three boroughs - Enfield, Merton and Westminster - did the numbers waiting for an affordable homes decreased, figures revealed.

Olivia Powis, of the London Housing Federation, said: "Despite fears of a drop in the market, house prices remain beyond the reach of many Londoners and the capital faces nothing short of a social crisis.

"Poor housing has been shown to cause health problems, lower educational attainment and family stress and breakdown.

"We must tackle the housing crisis head on to halt this growing social divide."