Eight families are made homeless every day in Brighton and Hove thanks to spiralling house prices, lack of security in the rented sector and below-average wages.

The crisis is compounded by pressure to keep people out of temporary bed and breakfast accommodation.

Brighton and Hove City Council's draft housing strategy 2004 to 2007 reveals eight households are requesting help every day.

Andy Richards, who chairs the Brighton and Hove branch of Unison, said: "That number of people presenting themselves as homeless doesn't surprise me.

"It's partly because of people's inability to afford accommodation and security of tenure is very poor."

Unison is battling for city workers to receive £2,000 a year Brighton weighting, which would be added to their salaries to help meet the cost of living. This already happens in London.

Mr Richards said: "These statistics are indicative of what we've been saying. Our members cannot afford these prices any more than many other residents in the city."

Among the main reasons for homelessness are eviction, the loss of rented accommodation and domestic violence.

The report says one-bedroom flats cost about five-and-a-half times the average city wage, while three-bedroom houses cost ten times as much.

People wanting to buy a one-bedroom flat would need an income of about £37,000 a year while an annual income of £69,000 is needed for many family homes.

The average annual wage in the city last year was £23,051.

The report says: "Homelessness and unmet housing need continue to exert real and significant pressures across Brighton and Hove, causing severe misery and hardship to those affected and a major financial strain on the authority.

"Households on average incomes can face significant financial hardship in renting, with limited opportunity to save a deposit for those aspiring to home ownership."

About 20 per cent of city residents live in private rented accommodation, the sixth largest figure in the country.

But even this market is proving too costly for some, particularly young people.

According to the report, 85 per cent of the city's private rents are higher than housing benefit levels.

Although rent levels have begun to stabilise, average rent for a one-bedroom flat of £574 a month is equivalent to the monthly repayment of a £98,000 mortgage.

A knock-on effect is a high turnover of staff.

The report expresses concern at the city's reliance on private sector housing. Already, 27 per cent of people who present themselves as homeless have been living in private rented accommodation.

The council is worried a rise in interest rates could cause mortgage payment difficulties for many new homebuyers.

A spokesman said the council was working on a scheme to get landlords to rent for ten-year periods, new housing benefit schemes and affordable homes in building projects.