Many young workers are being priced out of the housing market, a new report has claimed.

Based on data from housing market intelligence firm Hometrack, the research said that 23.4 per cent of young working households have a very slim chance of being able to own a property in their local area as a result of high prices and rising interest rates.

People in the south-west are more affected, with 53.1 per cent of young workers in the town of Kerrier and 50.8 per cent of those in Penwith unable to afford to buy a home.

Richard Donnell, director of research at Hometrack, said: "The affordability problems highlighted in this research are largely a result of an unbalanced and inflexible supply of homes which has led to high entry costs for housing.

"While the government has recently set out new targets for house building this research highlights the importance of developing the right type of housing in the right forms of tenure."

Last month, the Council of Mortgage Lenders revealed fewer first-time buyers are being given mortgages as house prices rise and lenders charge higher borrowing costs for those with small deposits.