CIVIC leaders are taking action after a major report highlighted the lack of affordable housing in North Yorkshire.
A survey, carried out by the Centre for Urban and Regional Studies at Birmingham University, showed Harrogate as having the biggest problem in the county.
Now, borough council leader Geoff Webber has written to Deputy Prime Minister John Prescott to warn that the shortage is affecting employers' abilities to recruit labour.
"The inescapable fact is that house purchase is way beyond the means of many residents and there is insufficient affordable rented housing to meet current and future needs," said Coun Webber.
"There is little that can be done to manipulate market prices, but if we are to avert a crisis for young people born and brought up in Harrogate, with families and jobs in Harrogate, then we must develop more affordable and shared ownership housing."
The council is nearing the end of an in-depth study to find the best sites for house building in the district.
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