Record numbers of families are being made homeless in Sussex as continually rising house prices threaten economic and social meltdown.

Repossessions in Sussex rose by four per cent in 2006, new figures have shown, with 2,900 homeowners facing the threat of losing their properties.

That figure is up from 2,786 in 2005.

The crisis has led homeless charities to criticise the Government for not providing enough affordable accommodation in the county and led to calls for immediate action to ease pressure on homeowners.

Of the 2,900 homeowners who faced court action for repossessions in 2006 around half actually lost their homes after failing to keep up with mortgage repayments.

The figures have also led to criticism of banks for rubber stamping mortgages up to five times peoples' salaries.

Shelter, the homelessness charity, said the situation was unacceptable.

Sussex spokesman Lynn Hannah said: "More and more people in Sussex are living with the devastating threat of homelessness which can rob families and children of their security and stability.

"Sky-high prices created by a chronic shortage of housing are forcing more families to overstretch themselves to get on the property ladder.

"The Government must strengthen the safety net for those who struggle to keep up with their mortgage and commit to building more social homes for those families and children who are paying the highest price for the ongoing housing crisis."

The Citizen's Advice Bureau in Sussex said one of the main reasons homeowners are struggling is that banks are now prepared to lend huge sums of money for mortgages.

A spokesman said: "There needs to be more responsibility among banks which are lending up to five times peoples' salaries. That stretches homeowners too much and is one reason why there are so many repossessions."

The Government is planning to build thousands of homes in Sussex throughout the next 20 years but the desired effect of lowering house prices is not expected to be felt for a generation.

New figures have also revealed that record numbers are now going into insolvency in Sussex.

As The Argus revealed on Monday, across Britain 29,804 insolvencies were declared in the last three months. Almost 2,000 of those were in Sussex.

There were 443 bankruptcies in the county during the fourth quarter of last year. In the nine months leading up to September there were 1,500.

Worthing based insolvency experts NancollasGreer said they did not expect the culture of debt in Britain to change.

Director Sarah Nancollas said: "As a society I think that it is unlikely that the present debt culture in this country will change, in fact it appears that large parts of Europe will be following in the UK's steps in 2007.

"As individuals the effect that debt can have on you life should not be underestimated as it can impact on several areas of life, such as relationships, health and employment."