THERE is a significant need for social housing in Test Valley because supply is not keeping up with demand, says Testway Housing.

Currently there are 2,152 people on the housing waiting register and at least 150 names are added to the register every year.

But the Government's official target of 18,000 to 19,000 affordable social homes built in the south east every year means each local authority should be building between 268 to 283 houses per year.

"Testway has a comprehensive development plan to build around 400 new properties by the end of 2007. But this is only likely to compensate for the amount of houses we are losing at the other end through Right to Buy," said Keith Harley, Testway's director of development.

Right to Buy is a scheme introduced nationwide by the Government in the 1980s which allowed tenants to buy their council house.

Last year Testway lost around 71 council houses to the Right to Buy scheme.

Nick Fry, director of development, said: "Research showed that most of our tenants could not afford to buy their home or rent in the public sector. House and rent prices are too high and incomes are too low."

Testway has recently acquired the former Blacksmith's Arms site in Andover and has plans to build 10 to 12 flats on the land.

The former Travis Perkins site in central Andover is being developed into a range of properties including 14 flats for Testway.

"We would like to significantly increase the amount of homes we can offer but our hands are tied, to a greater extend, by lack of funding," said Mr Harley.

Every home not being built means another family re-maining homeless, overcrowded, or in sub-standard housing conditions.