RISING house prices are prompting a Gwent council to help residents onto the property ladder.

Blaenau Gwent Council is working on plans to offer affordable housing after house prices in the borough soared 161 per cent in the past seven years.

The Argus reported how house prices in Ebbw Vale rose by 32 per cent last year, with the average house going from £93,469 to £123,753. The average rise in Blaenau Gwent was 20 per cent.

The council now plans to work with the private sector to help people buy homes.

Shared ownership is being considered, where residents buy part of a property and pay rent on the rest.

These schemes are usually in partnership with a housing association, but private house-builders run similar schemes.

The council, under its local housing market assessment, also proposes to use section 106 agreements to secure shared ownership units and social rented homes as part of new developments exceeding 30 units.

The proportion of affordable housing required is yet to be agreed but other councils currently require between 20 per cent and 30 per cent.

Council leader John Hopkins said: "The council cannot borrow any more money to invest in housing stock.

"So the only way forward is to work with the private sector and introduce schemes where people can part-buy a property.

"This way they will not be saddled with huge mortgages and face huge repayments."

The council commissioned Opinion Research Services to interview 1,500 households and found more properties will be needed the next five years.

They also found that 17 per cent felt they were living in unsuitable accommodation and that a quarter of housing stock is rented through social landlords.

A council spokesperson said: "There's a need to increase the number of affordable housing units within Blaenau Gwent, predominantly due to relatively high house prices for the area leading to reduced opportunities for low-earning families and first-time buyers."

CASE STUDY Blaenau Gwent Council will be looking at examples in other Gwent areas to ease its housing problem.

Newport-based housing organisation Fairlake, part of the Seren Group, specialises in affordable home ownership and has helped more than 900 people buy their own homes.

Through schemes like Newport City Living, depending on individual financial circumstances, a person earning £22,000 (or a joint income) could purchase a £125,000 property.

Fairlake currently takes reservations for the Newport City Living scheme at Duffryn Way (from £77,000) and Lilleshall Street (from £70,000). All prices represent 70 percent of market value.

Fairlake also operates in Caerphilly, Torfaen and Monmouthshire.

Rhys Dando, 22, and partner Aimee Lewis, 21, bought their first home in Duffryn thanks to Fairlake.

The couple, both claims handlers at Newport's Lloyds TSB call centre, bought a Bovis two-bedroom property with garage and garden in Pennard Close last month.

They got a £101,150 mortgage for the £144,500 property, with Fairlake paying the other 30 per cent.

They have to pay back the 30 per cent over ten years, or pay Fairlake 30 per cent of what the property is worth when they sell it.

They are paying £577 a month on their mortgage, just £120 more than when they rented in Caerleon.