YOUNG professionals could be put off moving to the region because of a lack of suitable housing, according to a report.

The report, commissioned by the House Builders Federation, reveals that the North-East lags far behind the rest of the country in providing detached houses, which many young career-minded people want to buy.

The report also highlighted the need to improve the condition of housing in the region to attract more people to the area.

Over the past three years, 36 per cent of recruits to professional posts in the region have come from outside the area.

A forecast by regional development agency One NorthEast suggested the area's population would have to increase by up to 500,000 by 2016 if the area is to enjoy the levels of economic growth seen elsewhere in the country.

But an influx of profesionals would cause problems for the housing market, according to the House Builders Federation.

Its report said that only 12 per cent of the region's housing was detached, compared with a national average of 21 per cent, and that quality housing in the region was in short supply.

Pierre Williams, a spokesman for the House Builders Federation, said: "The North-East is in the grip of a feelgood factor driven by the booming service economy. But unless action is taken soon to make sure this continues, the future looks much less rosy."

He said the region had become popular with professionals because it combined good job prospects with an affordable quality of life, but warned that 90 per cent wanted to own homes, and said that providing these houses would be crucial in keeping them in the region.

The report also revealed that 16.5 per cent of recent home purchases in the region were by people who had moved from elsewhere, with the strongest demand for homes in the £200,000 to £300,000 range.

Mr Williams also said that despite 136 hectares of derelict land being redeveloped last year, the region still had a high proportion of older, often unfit housing.

He said: "The renaissance of the North-East has made it one of the best regions of the country in which to live and work. The proof of this is in the number of young professionals choosing to make it their home.

"This timely report shows what must be done to ensure this continues."