A "housing underclass" is being created as a result of the government's failure to invest in social housing, a report published by the Royal Institution of Chartered Surveyors has warned.

It said that a shortage of supply has helped to overheat Britain's housing market and prompted a "homes crisis".

A spokesman for the Office of Deputy Prime Minister, told ePolitix.com: "We're aware that there is a problem in terms of affordable housing in the UK.

"However, the Sustainable Communities Plan hopes to address this - particularly in the use of brownfield sites."

Forum Response: Royal Institution of Chartered Surveyors

Louis Armstrong, chief executive of RICS, said: "A housing underclass is being created and its numbers are swelling to include people who traditionally would have been able to purchase their own home.

"House prices in the UK have doubled since 1995 and this means that large numbers of people, particularly in high value areas, have little hope of accessing decent housing."

Forum Response: British Property Federation

Ian Fletcher, director of commercial and residential property at the BPF, told ePolitix.com: "We agree with the RICS that there needs to be a step change in investment in housing, outside the owner-occupied sector.

"In our evidence to the Barker Review we detailed how, with relatively small and inexpensive changes to government tax policies, there could be a significant increase in institutional investment in the private rented sector and key worker housing.

"At a time when government finances are tight, this might provide a viable solution to help stimulate greater supply, raise standards, and in the longer-term help reduce volatility in the housing market."

Forum Response: Construction Products Association

Allan Wilen, economics and special projects director, told ePolitix.com: "Recent government and media attention has focused on the lack of affordable housing, an ill-defined concept - as we have pointed out in our submission to the Kate Barker Review - covering both social housing providing accommodation at below market rates and low priced homes provided by the private sector.

"Recent pronouncements on the need for more 'affordable' housing, particularly to assist in the recruitment of key workers on middle incomes, such as teachers and policeman, have helped obscure the need for Government to undertake an effective assessment and set clear long-term targets for new social housing provision.

"Changing demographic and social trends are increasing the overall number of households in the UK, including those in need of social housing, yet current levels of new social housing provision are insufficient to make up for stock lost through demolition and the right to buy, let alone meet the growing number of households requiring such accommodation. The Association estimates that current levels of new social housing provision in England alone should be at least doubled to around 60,000 homes a year.

"Urgent action is required to both tackle the present restrictions on new housing supply and to stimulate greater investment in the existing housing stock. In our submission to the Kate Barker Review on housing we have suggested that the slow and restrictive planning regime, particularly the recent changes to planning guidance (PPG3), should be addressed; that VAT on all repair maintenance and improvement should be reduced to 5 per cent to encourage the better use and extension to the existing stock; and that alternative manufacturing methods and materials, including prefabrication, should be used to speed up build times on site, cut construction costs and raise quality."