House prices in the county have soared by 106% in six years, making them out of reach to most people, according to research by the National Housing Federation.

In 1997, an average house cost £94,227, but by 2002, it had risen to £194,360. During the same period, the average wage rose by 35%, from £366.90 to £494.80 a week.

Patrick Shelley, from Atlantic Housing Group said: "These statistics show a grim picture of the situation across Hampshire and the South-East.. The situation directly and indirectly affects all of us as key workers, such as nurses, teachers and police officers, are not able to move to the area.

"There is also extra pressure on existing affordable housing and future demand looks set to increase with a continued growth in population in the south-east."

The research also shows that homelessness and housing need is increasing. The number of households registered with local authorities as being in housing need is growing, with a substantial rise in nearly every Hampshire borough.

In response to this urgent need for affordable homes, Eastleigh Housing Association (EHA), which is part of Atlantic Housing Group, has submitted a range of planning applications for modern, flexible accommodation in Bishopstoke, Netley and Eastleigh.

The association now has 5,000 homes in the South, including Winchester, Fareham, Southampton, Eastleigh and the New Forest.