The development agency said housing plans were "insufficient"

The agency said that current housing proposals are "insufficient".

The regional assembly has been consulting residents on whether they want to see 25,500, 28,000, or 32,000 homes per year built in the South East.

Opponents are concerned about the impact on the environment and the effectiveness of local infrastructure.

Public consultation on the South East Plan, which sets out the housing options, runs until Friday.

Costs 'could worsen'

Under the plan, houses would be built in the Ashford, Thames Gateway and Gatwick areas, in parts of Surrey and along the Sussex coast.

In a response to the plan, Seeda backed findings that 800,000 more jobs would be needed in the region by 2026 to sustain growth in the South East economy at about 3% per year.

It may seem a stark message, but it is essential that we spell out the clear conclusions Pam Alexander Chief Executive, Seeda

Seeda said housing proposals were "insufficient", even at the highest option, to provide affordable homes for all the employees needed.

Chief executive, Pam Alexander, said: "We need a figure of around 36,000 housing completions per annum: more than the Assembly's highest proposal of 32,000 per annum.

"If either of the lower-level housing delivery options is adopted, we risk worsening the high cost of housing in the region.

"In-migrants, notably from London, will have greater market power than the resident population.

"This is already a major problem for large numbers of people in the South East."

She said Seeda was backing the building of 32,000 houses per year, for the first five years of the Plan.

She added: "It may seem a stark message, but it is essential that we spell out the clear conclusions of our research: the proposals within the South East Plan are in danger of stifling the development of the South East and therefore the economic prospects of the UK as a whole."