THE growing gap between house prices and incomes could damage the future of the region's rural communities, a Government report says.

The 2005 State of the Countryside report, published by the Commission for Rural Communities (CRC), states that buying a house is now impossible for many country dwellers.

The problem is particularly acute in the North-East and North Yorkshire.

The price of an average house in a North-East village has risen from less than £100,000 in 2000 to more than £150,000 today, the report says.

In North Yorkshire, a rural property costing about £120,000 five years ago will now be worth more than £200,000.

Rural incomes have failed to keep pace. A mortgage for a village house is likely to be 50 per cent of an average rural household's income, compared to 30 or 40 per cent in a town or city.

The Reverend Dr Stuart Burgess, chairman of the Countryside Agency, which oversees the CRC, said: "In many parts of rural England, particularly the smallest settlements, the gap between house prices and incomes poses significant questions about the future for those communities.

"If these are not addressed now, there is a very real likelihood that some rural communities will change irrevocably.

"Then, who will take on local jobs?

"Who, in future, will be providing and using local services?

"And what will happen to the strong community spirit we associate with rural communities?"

The report states that although, on average, people living in rural areas earn more than those living in towns and cities, the rural figure is pushed up by wealthy commuters and retired people. In the most disadvantaged rural areas, one in three households survive on a low income.

"This is not just a matter for Government," said Dr Burgess.

"We all need to take action to tackle these issues, including rural communities themselves.

"As I travel around the country, I shall be asking rural people about the solutions they would like to see and ensuring that Government, at all levels, takes account of their views."