A critical shortage in housing could have contributed to prices in Bradford rising more than any other city in the UK over the last year.

The city saw an annual increase of ten per cent in 2011, taking the average house price up to £158,401 – which was still below the national average of £164,785 despite an annual increase nationally of just 1.1 per cent.

The increase in Bradford prices, revealed by mortgage lender Nationwide yesterday, has been attributed to a number of reasons, including a rising population, low housing prices to begin with and a low volume of properties being bought and sold.

Councillor Val Slater, Bradford Council’s executive member responsible for housing and planning, said the rising prices reflected the shortage of housing in the district.

She said: “We do have something of a housing crisis and when there’s a shortage of any commodity, the prices go up.

“It’s encouraging people want to come and live in Bradford, and recognise what a thriving city it is, but on the other hand, the increase in prices does cause me concern because the average income in Bradford is pretty low compared with a number of other cities.

“Ten per cent of our houses are over-crowded and 40 per cent of the private rented sector are below what we call the decent homes standard.”

Coun Slater said the growing population, coupled with lifestyle changes which has seen an increasing number of people living alone, has put stress on the housing stock.

“Which is why in the Local Development Framework it is estimated over the next 20 years we will probably need another 45,000 houses in the district,” she added.