RIBBLE Valley's ban on new luxury homes - meant to help tackle its affordable housing crisis -- has just made the problem worse, council bosses have admitted.

But chief executive David Morris today insisted he still felt the authority was doing the right thing in refusing developers permission to build new luxury housing, and pledged action on new 'affordable homes' was just around the corner.

The council implemented a ban on 'luxury developments' earlier this year, insisting only homes which conform to 'affordable housing' targets would be given planning permission.

They cited a massive over-supply of luxury homes already, aimed mainly at people who planned to become commuters, at the expense of homes local people could afford.

It had been hoped this would force developers into working with the council to build houses which met local housing demands.

That has failed to materialise -- but the lack of new houses has resulted in more people opting to buy second-hand homes already on the market.

In turn, that has pushed up prices of houses across the borough, making the situation more chronic than ever.

Last month, the Lancashire Evening Telegraph revealed how the average house price in the Ribble Valley was now £209,407 -- with terraced housing, the traditional stomping ground of first-time buyers, now fetching more than £100,000.

Prices had risen 31.9 per cent in three months, and 70 per cent up on last year.

Mr Morris said: "We do accept that our ban on luxury housing developments has pushed prices up.

"But we do still think we have done the right thing, because we now have sites available for affordable housing, and we are trying to tempt developers on to them.

"We have a variety of things we are trying to do, including bringing empty houses back into use. We also asked the Government for a Private Finance Initiative to build affordable homes, but were knocked back.

"We need to protect the character of Ribble Valley and stopping more luxury homes swallowing us up was one way of doing that."

Sarah Leach, branch manager of Fox and Co estate agents in Longridge, said: "The ban on new housing developments has certainly pushed prices up.

"More people are now chasing existing houses which has pushed prices up further."

Last year's record rises meant the average home in the Ribble Valley is now £4,000 more expensive than the average home in the south east.