DEMAND for low-cost homes is rapidly outstripping supply, according to a task force set up by the York-based Joseph Rowntree Foundation.

A report published today, Swamps And Alligators: The Future For Low-Cost Home Ownership, said subsidised schemes that provide a low-cost foot on the property ladder are increasingly popular.

It voiced concern that local authorities often fail to recognise the benefits of making shared ownership part of the mix when considering new housing developments.

"By focusing on the immediate requirement for rent-only accommodation among households on their waiting lists, they neglect the strategic need to create sustainable, mixed-income communities, including affordable homes for key service workers such as nurses, teachers and social care staff," said a task force spokesman.

The task force, which was chaired by Lord Best, director of the Joseph Rowntree Foundation, found that demand for low-cost ownership was particularly strong in areas where market prices were high.

The findings were presented to Lord Falconer, Minister for Housing, Planning and Regeneration.

Updated: 10:47 Thursday, December 20, 2001