A STARK warning that the massive costs of land in the area is making affordable housing schemes "virtually impossible" has been given by Waverley Borough Council.

In a report to the community overview and scrutiny committee this week, WBC's Waverley Homes, which manages, maintains and improves affordable housing, acknowledged that it is "unable to meet the need and demand which prevails locally".

It makes it clear that in general terms, Waverley will not be building any new social homes to provide additional housing stock, but will concentrate instead on bringing existing homes up to standard.

With an acre of development land in Waverley commanding anything from a million pounds upwards, it was agreed this week by members of the committee to look at alternative ways of providing land for social housing.

The report, which will be discussed by Waverley's executive committee next week, along with a set of proposals to address the situation, said that with house prices in Waverley more than double the national average, people on low and modest incomes are unable to get on to the housing ladder.

It paints a bleak picture of the prospects for young people owning their own homes in the area. Those in their late teens and 20s are leaving the district in increasing numbers because of both "the high costs of home-ownership and the relatively small and expensive private rented sector".

The report says rents are fairly expensive with three-bedroom houses last year commanding in the order of £800 per month and more.

Councillors were told that had a knock-on effect for businesses and employers such as the health service who are finding it difficult to recruit staff.

There are currently some 1,066 households on the council's housing needs register, of which 51 need specialised homes for elderly or disabled people, and 395 are households with, or expecting, children. Last September there were 147 households in temporary accommodation.

Results of an independent housing needs study in 1997 revealed that there was a considerable number of households in need that had not applied to Waverley for social housing. A further study is expected this year.

With 21 per cent of the local population over retirement age, compared with 19 per cent countywide, Waverley says the number of residents over the age of 75 has risen by more than a third since 1981, and almost 86 per cent of the population own their own homes.

The latest figures show that Waverley owns 5,399 properties to rent with an additional 98 shared-ownership properties. Of that total, almost a quarter are sheltered homes and community warden schemes for the elderly, with some first-floor bedsits and flats without lifts on first floors which are difficult to let.

In addition to Waverley Homes there are other housing associations which cater for

people who need affordable homes.

Some 20 affordable homes are scheduled as part of the new housing development at the A3, former Happy Eater site at Hindhead, and more local homes are planned as a result of the redevelopment of the sub-standard council-owned Kilnfields council estate in Haslemere. The report states that in general "Waverley Homes will not undertake any new-build to provide additional housing stock. Mindful of demands, which are not matched commensurately by resources, its priority will be investment in the existing housing stock to bring properties up to standard, rather than funding new-build projects. The council will use its enabling role to promote additional social housing in the borough."

The report said that priority for expenditure will be investment in the backlog of repairs which have been identified as being urgent or essential.

The report also considers there needs to be a review of council-owned social housing with a view of some properties being made available to other tenants rather than just elderly people.

"The council needs to critically examine the current sheltered housing stock - its use, condition and future - to ensure they are fit for the purpose and meets century standards and expectations."