More than 400 private properties in Worthing have been vacant for more than six months.
Soaring housing waiting lists are forcing Worthing Borough Council to turn its attention to snapping up homes which have been empty for a long time.
In 2000/01 the council brought back into use 44 properties but none was reoccupied the following year.
Councillors are being urged to give grants to owners so repairs can be carried out on homes in a state of disrepair so they can be occupied again.
Council leader Sheila Player said: "The impact of properties that have been left empty and become dilapidated can be severe. They detract from otherwise attractive neighbourhoods and can depress property prices in the area.
"They can also present environmental hazards and attract vandals and other criminal activity.
"High demand for housing in the South-East has pushed up house prices and rents beyond the reach of many residents.
From June to September 2002, Land Registry records show that the average price of a property in this region rose by eight per cent.
Prices increased by 26 per cent on the same quarter in 2001.
"In April 2002 the council wrote to everyone on the housing register inviting them to reapply. As of December 18, we had received 1,598 applications.
"With such a high demand for affordable housing, we have a duty to make the best of local resources, including houses standing empty.
"Most property owners are responsible and interested in making the best use of their properties and keeping them well maintained. For some, however, the cost of repairs are prohibitive, and the prospect of selling or letting a property daunting.
"Our aim is to help owners as far as possible to overcome these problems."
The council believes there are almost 760 empty homes in Worthing and 300 of these have been empty for more than five years.
It said property speculators, sitting on their assets until the market reaches a peak to sell, were partly to blame.
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