And they are set to be priced out of the market even more over the next three years, with the average home in St Edmundsbury set to rise by £67,000 from around £218,000 at present, to £285,000.

Most people in the borough now need to borrow nine times their income to get a foot on the housing ladder – and all this at a time when the credit crunch is seeing lenders tightening their belts.

The startling figures were revealed in a report on affordable housing, considered by St Edmundsbury Borough Council's overview and scrutiny committee on Tuesday.

"More people are being priced out of market housing, which is creating more strains and demands to deliver more affordable housing," said the report.

It reveals the average household income is just £23,400 – less than half that required to get on to the housing ladder.

The borough has 4,700 households on the housing register, more than half of which are single people, while 35 per cent are families and 10 per cent are older people with specific housing needs.

The council has a target to deliver 40 per cent affordable housing on new building projects of 15 units or more in towns or five units or more in villages.

In 2006/7, 536 new houses were built in the borough, of which 121 were affordable.

The report also concludes that regionally not enough is being done.

Some 11,000 new affordable homes need to be built in the eastern region each year, it says. That compares to just 3,000 built in 2004/05.

Regionally, numbers on the housing register and homelessness are rising.

Jade Bunce, resident sales manager at Connells estate agents, in Woolhall Street, Bury St Edmunds, said the picture was not as grim as painted in the council report.

"There are a lot of different deals and rates that money lenders do – things like shared ownership schemes, key worker schemes and shared equity.

"There are a lot of things out there to help first-time buyers. And there are homes out there for £120,000, such as one-bedroom apartments or two-bedroom houses for £140-150,000.

"It is not that bad. Houses are still selling," she said.