Housing projects have helped cut the number of homeless people in Brighton and Hove by 16 per cent.

There has also been a fall in the number of families housed temporarily in bed and breakfast accommodation during the past year.

In December, Government figures showed there were more than 1,000 families living in temporary accommodation in the city, an increase over four years of 37 per cent.

At the same time, figures released by the National Housing Federation revealed Brighton had the highest number of homeless families in the South-East.

Since then, however, many families have been housed through initiatives created by Brighton and Hove City Council's housing strategy.

One has involved modernising run-down private houses to bring them back into use.

The council's housing strategy says:

495 new low-cost homes were developed between 2001 and 2003, 586 more are being built and 1,000 more are proposed over the next five years.

The council's commitment of £3 million to low-cost housing this year helped bring in about £24 million extra funding from the Housing Corporation, housing associations and private finance.

The number of people becoming homeless from rented housing fell sharply last year thanks partly to an advice service for landlords and tenants, which has helped resolve problems and prevented evictions.

The number of people sleeping rough in the city has fallen by two thirds since 2001.

625 private homes which were in a poor state of repair have been made fit for occupation through the council's renewal policy.

400 properties a year are adapted to help vulnerable residents remain in their homes.

Housing councillor Jack Hazelgrove, said: "We are not complacent. The city has real housing needs.

"Rising property prices mean a family-sized, three-bedroom house costs more than 14 times the average income, making it very difficult for local people to get a foot on the property ladder.

"Homelessness remains high, despite the reduction in recent years as a result of our prevention work.

"We are already producing results and we will continue to do so, providing more low-cost housing for local people and key workers."

Millions of pounds will be invested by the Government this year in an effort to turn around the city's housing crisis.

The council is to receive £5.6 million of Government cash from the South-East Regional Housing Board.

The money will be used to provide more low-cost housing, improve council homes and adapt properties for the disabled.