HIGH house prices in part of North Yorkshire have led to an increase in homelessness among young people, according to a council report.

The average price of a terraced house in Harrogate is £174,584 - one of the highest figures in the country.

In a report to Harrogate Borough Council, community services director Dawn Saxby said the lack of affordable housing has led to an increase in the number of young people without a home of their own.

She said although there was an action plan to improve services to the most disadvantaged groups, there was continuing pressure on limited stock.

"While the council cannot afford to divert resources away from meeting the needs of the groups for which there is a statutory duty, there are significant problems for those young people on low or moderate incomes," said Mrs Saxby.

Meanwhile, a planned homeless strategy is working to increase affordable housing and improve young people's access to homes.

Meanwhile, the report to the counbcil's cabinet highlights the specific problems of young people in rural areas who cannot afford housing without a job, who cannot get a job without transport, and who cannot afford both a house and a car.

The Housing Corporation, the Government agency that funds and regulates registered social landlords, could soon be making changes to aid young first-time buyers. It has already been suggested that grants could be increased from 25 per cent to 40 per cent of the property value and be coupled with cheaper borrowing arrangements.

Harrogate district is in the so-called Golden Triangle where property prices have outstripped those in many other parts of the country.

Exceptionally high property prices have been recorded in the Harrogate, York and northern Leeds areas within the "triangle".

Councils covering the area are co-operating in a bid to produce innovative housing and planning solutions to help better access to affordable homes.