SKY-high property prices could jeopardise economic recovery in the Malvern Hills district unless more affordable housing is developed.

The warning comes after a survey published on Thursday, December 9, revealed house prices in Malvern Hills are the second highest in the West Midlands region.

The average house in Malvern Hills costs s £231,904, compared to £167,569 for the region . ONly Stratford-on-Avon is more expensive than Malvern Hills, says West Midlands Home Truths 2010, by the National Housing Federation.

Gary Woodman, head of policy with Hereford and Worcester Chamber of Commerce, said local employers think high property prices deter people from moving to the area.

"This makes it more difficult to attract the right calibre of employee to the area. It does have an impact," he said. "The only solution is to start building again. It's important for areas like Malvern because we've got significant employers that need good-quality staff."

Coun David Hughes, MHDC's portfolio holder for economic development, said affordable housing is a vital part of the new South Worcestershire development plan, currently being formulated.

He said: "We're putting great emphasis on economic development in Malvern Hill, and that will mean making it an attractive place to bring your business. That means there will have to be sufficient housing, and a balance of housing types, with a high proportion of affordable housing.

"We also want to allow our young people to remain in the district, and that means not only encouraging employment opportunities, but housing development, This is key for the long-term future of the district."

But estate agent Richard Ashton of Malvern firm Allan Morris and Ashton said the biggest problem now facing first-time buyers is financial.

But estate agent Richard Ashton of Malvern firm Allan Morris and Ashton said the biggest problem now facing first-time buyers is financial.

He said: "The housing associations are doing a great job providing affordable homes, but the banks and building societies are simply not lending like they were three or four years ago.

"House prices fell by 25 per cent and have since risen, but what banks and building societies lend had fallen by 40 per cent."

Mark Ball, who has been an estate agent for 40 years, said: "Finding the financing is the big bugbear. Some first-time buyers need to find a 25 per cent deposit. We don't want to go back to the 100 per cent mortgages that were being offered a few years ago. but there has to be more lending if first-time buyers are to get on the ladder. But being a first-time buyer has always been difficult."

Richard Grounds of Festival Housing said the association offers a range of alternatives including rented housing, and low-cost home ownership.

"This year, Festival is providing over 150 new affordable homes in Worcestershire and Herefordshire. However, we know that cuts in government funding may make this more difficult to achieve in future years.

"Right now, we have brand new apartments for intermediate rent at Prospect Close in Malvern, more flats for intermediate rent at Wessex Place in Malvern Link and more new low-cost home ownership houses coming at Malvern Vale in the new year."

Mark Ball, who has been an estate agent for 40 years, said: "Finding the financing is the big bugbear. Some first-time buyers need to find a 25 per cent deposit. We don't want to go back to the 100 per cent mortgages that were being offered a few years ago. but there has to be more lending if first-time buyers are to get on the ladder. But being a first-time buyer has always been difficult."

Richard Grounds of Festival Housing said the association offers a range of alternatives including rented housing, and low-cost home ownership.

"This year, Festival is providing over 150 new affordable homes in Worcestershire and Herefordshire. However, we know that cuts in government funding may make this more difficult to achieve in future years.

"Right now, we have brand new apartments for intermediate rent at Prospect Close in Malvern, more flats for intermediate rent at Wessex Place in Malvern Link and more new low-cost home ownership houses coming at Malvern Vale in the new year."