A political activist has called on the council to help rough sleepers and people in temporary housing as holiday lets left many people unable to afford a home.

Daniel Harris asked Brighton and Hove City Council to put local people first and ensure that new schemes worked for the community not for “mega host” landlords who could let a flat for £250 to £350 a night.

He told a meeting of the full council that private sector landlords were selling up, such was the demand for the holiday market.

Mr Harris said that the situation was “disgusting” when there were 2,200 people in temporary housing and rough sleeping was on the rise.

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He said: “Airbnb mega hosts worsen the housing crisis for key workers and council tenants in Brighton as investment properties leave them in dire need of temporary and affordable accommodation.

“The Airbnb website confirms, even with the recession and higher interest rates, there are almost 3,000 listings in Brighton and Hove at the moment and, of those, 74 per cent are entire home rentals.

“Is it not time for the city to adopt an Airbnb levy or tourism tax of 10 per cent, specifically applied to the entire homes listings and the mega host market, and compensate the public and community with new income to improve our communities and build new homes we desperately need in this city?”

Outside the meeting, Mr Harris said that he had paid the tourism tax in Mallorca, adding: “Why do I go to Mallorca? Because of its beautiful friendly culture and atmosphere, with great people. It’s clean with plants and trees and looked after.

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“I am happy to pay whatever it is. I do not think a small but sizeable new levy would put people off. Having a cleaner city with no rough sleeping would bring in investment.”

Green councillor Martin Osborne, who co-chairs the council’s tourism, equalities, communities and culture committee, said that there was a demand for housing and for holiday lets to support the visitor economy.

He said: “We take the point about the short-term lets market. We have done some work on this and commented on the government’s consultation.

“They are bringing in a register later this year which we obviously support. We would like to go further with changing planning laws so we can have this designation for ourselves.”

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Cllr Osborne said that the council would support a tourism tax but did not have the power to bring one in.

He said that Mr Harris should respond to the upcoming review of the City Plan Part 1 regarding zoning for tourist accommodation.

Last September, the council responded to the government’s consultation on holiday lets, saying: “Housing demand and rising private sector rents have an adverse effect on the affordability of housing in the city.

“The lack of affordable housing supply has an economic impact on our ability to retain lower-income working households and employment in the city across all sectors.

“With less available stock and the same (or increasing) numbers trying to access this, this will result in higher market rents being charged. We continue to see an increase in advertised rents across most sized properties.”