NEW research from the National Housing Federation, the trade body for housing associations, shows house prices have risen to 8.04 times local income within Essex, with the Epping Forest figure rising 9.3 times.

The figures are based on official government statistics on house prices from the Land Registry and the latest New Earnings survey.

The Government has a number of schemes trying to make home ownership more affordable, including by providing shared equity mortgages which would typically allow a first-time buyer to purchase 75 per cent of an open market property, and pay a subsidised rent on the remaining share. But for many low to moderate earners in Essex, being able to afford even a 75 per cent share in a property is unrealistic.

At the end of lastyear the average house price in the Essex was £211,854. The average income in Essex is £26,362 giving a house price to income ratio for Essex of 8.04.

Even lower quartile prices - the cheapest 25 per cent of all homes in the market - are more than 5.3 times the average income.

A household in Essex, using a standard mortgage, now needs an income of £57,503.

The National Housing Federation's head of region, Gina King, said: "The particular problem for the East of England is that incomes are comparatively low compared to prices. Our incomes are about the national average but our house prices are ten per cent above average. This clearly makes it difficult for people to meet their housing need through the open market. This can obviously cause a serious problem for the economic future of the region. "Without a good supply of housing at prices and rents that people can afford to pay, it's very difficult for companies to recruit and retain staff and stay competitive. We need to treble affordable housing supply in the East of England in the coming years."