A NEW report has revealed an "acute" shortage of affordable houses and highlighted the high levels of second or holiday home ownership in the Lake District.

The Countryside Agency's State of the Countryside report calculates that in Ambleside the average house price is around £163,000, compared with an average income of around £ 14,000.

It also states 24 per cent of properties within the Lakes Parish are second homes, which affects house prices and further reduces the stock available for locals.

The agency - the Government's adviser on rural issues - calls for more affordable housing in rural areas to help create populations capable of supporting local services such as shops and schools.