Alnwick Castle appears in the Harry Potter films

Prices in Alnwick have risen by almost 65% in the past three years, making the average property �140,000 compared to a regional average of �87,000.

However, the average wage in the area is around �60 a week less than the regional figure.

The housing problem is being raised at a meeting of Alnwick district councillors on Tuesday evening.

Government limits

The town is home to Alnwick Castle, featured in the Harry Potter films, and was voted the best place in the UK to live in a 2002 magazine poll.

Councillor Gordon Castle said the whole district had been affected by rising house prices but Alnwick had seen the biggest increase.

He said: "We really do have a problem for young people, young families and local people hoping to buy a house for themselves in the place in which they were brought up.

"The problem is getting worse. There is a move away by many young people and its is urban commuters and retired people who can afford the houses."

Mr Castle said government limits on the number of houses that can be built made the problem difficult to tackle.

He said: "We cannot just build our way out of it by putting up houses to meet perceived demand.

"We are prevented by the County Plan and, at present, we are permitted to build around 112 houses a year.

"That figure has been limited by the new County Structure Plan to 65 a year until 2006, and then 75 a year until 2016.

"This, in my opinion, is ludicrously inadequate and will put even more pressure on house prices and we need to fight this."