Property is becoming less affordable

Shelter said that by the end of the year it could be almost 30% harder for would-be buyers to get on the property ladder than it was a decade ago.

The findings are based on Shelter's Roof affordability index.

It was devised by York University's Professor Steve Wilcox who calculated that by the end of 2004, housing will be 28% less affordable than in 1994.

The index analyses the average incomes of working age households and average mortgage costs to measure accessibility to the property market.

Our review is examining the functioning of the housing market and future affordable housing requirements Scottish Executive

The findings come in the wake of warnings from the Governor of the Bank of England that house price falls may be on the horizon.

Gavin Corbett, of Shelter Scotland, said the index demonstrated the urgent need for more Scottish Executive house building projects.

"It shows that, as the housing crisis deepens, more and more people are unable to afford a home in the market," he said.

"A more unaffordable housing market puts pressure on the limited supply of social housing and means more people are trapped in emergency housing.

"So for the huge number of families trapped in a cycle of bad housing the prospect of a decent place to live is fading further into the distance year by year."

Government review

The Scottish Executive said it expected to announce conclusions on its affordable housing review in the next fortnight.

"Our review is examining the functioning of the housing market and future affordable housing requirements," a spokeswoman said.

"It is focusing on the housing needs of first-time buyers and those on low or moderate incomes seeking home ownership.

"It is also looking at low cost home ownership options, infrastructure, possible changes to planning requirements and addressing any constraints to new housing developments."