Bermuda's housing shortage has worsened, according to top rental agencies.

But Housing Minister Nelson Bascome denied there was a crisis, although he admitted rental prices remained too high for many tenants.

And he said Bermudians needed to "start looking at where people's heads are at'' and use money they were now spending on expensive cars for down payments on homes instead.

Real estate agents throughout the Island said there were ample properties available, but noted they were sitting empty because people could not afford the prices being asked for them.

They admitted there was a severe shortage of affordable housing and were faced with frustration in their efforts to try and place the hundreds of people in need of housing.

"Affordable housing is absolutely a problem,'' said Chamber of Commerce president and realtor Chris Valdes-Dapena. "There's no doubt about it.

"People who own homes and have a property for rent have an asset,'' said the Property Group Real Estate Agency president. "And with any asset you try to create the highest possible return from it. It's regrettable that the market has created a situation like that.'' Lisa Mello, a rental representative for J.W. Bermuda Realty and Coldwell Banker, added: "It's a very complex situation and there is a housing crisis affecting Bermuda. We don't dictate the market, but we do analyse and compare properties. It's an unfortunate situation that is beyond any one person's control. I have a ton of one-bedroom apartments and properties, but they're all in the three, four and six thousand dollar range. These houses sit empty, but we cannot fill them because people can't afford the price.'' Agents said they believed Government needed to take swifter action and implement its plans to supply affordable housing for those in need.

Tackling affordable housing crisis The issue of affordable housing has been a thorn in the side of the Government since it outlined its vision for Bermuda in November, 1998.

And in an attempt to alleviate the stressed housing situation, the Progressive Labour Party (PLP) promised to build 100 new homes in its initial years of Government.

It had also planned to have 50 completed by June, 2000, but until last month, they had not materialised.

This past month, the Development Application Board approved a series of plans for Government to build 20 new housing units at Southside, despite strong opposition from area residents.

And realtors said Southside, along with other proposed housing developments, were long term projects that would not fix the immediate problem.

However Mr. Bascome said he disagreed that there was an affordable housing "crisis'' and instead said it was not so much a Government issue, but a society issue.

"There are serious housing issues, but it's not a crisis.'' Mr. Bascome said there were in fact housing units available but said rents were too steep for residents trying to find affordable housing.

He noted however, that his Government had worked steadily on renovating various houses around Island in an effort to provide homes for affordable rent.

But Mr. Bascome pointed out that household and community dynamics were changing as the population increased and that put stress on the housing situation.

And he proposed as one solution a programme that made it easier for potential home owners to obtain a mortgage to buy a house.

He said the Bermuda Housing Corporation had reduced mortgage rates to ten percent of the cost of a house.

But he believed some Bermudians were confused about their priorities and had not taken full advantage of the opportunity.

He used their ownership of expensive cars as one example.

"First of all, it's all in the terms of the Bermuda mosaic,'' he said. "We are being driven by a material need.

"Look at how many cars we have on the road. You cannot get a car these days for less than $20,000. How many of these car owners are home owners? "We have to start looking at where people's heads are at. The money they are spending on a car, they could be using as a down payment on a house.'' Mr. Bascome hoped to bring an immediate solution to the problem with the reintroduction of the Rent Increases Domestic Premises Act in the House of Assembly last week.

Mr. Bascome said the bill, which was tabled for debate in the House of Assembly until this Friday, is expected to pass. He said it would make high rent homes more affordable through a form of rent control.

Ms Mello noted that part of the problem was because landlords were avoiding renting to locals and holding out to rent to expatriates.

"Landlords are apprehensive to rent to locals,'' she said. "They have mortgages to pay and sometimes there is a risk renting to locals.

"There have been many cases where people don't take care of the property.

That's not always the case, but it's unfortunate that good individuals have to suffer. I want to place Bermudians, but I also want them to pay their rent on time.'' She added: "I think it's my job to get Bermudians housed before expats, but the expats can afford more. But in reality, people cannot and should not have to pay more than what they can afford to find decent housing.''