Families and first-time buyers struggling to get on the property ladder could find relief in a new Bill to penalise owners of empty homes.

Almost 2,500 homes are standing empty in Brighton and Hove.

Hundreds more "holiday homes" are used only at weekends or in the summer.

Yet at the same time the city is facing a housing crisis. The waiting list for certain categories of council home is five years.

Young people, faced with rising prices, are struggling to get a first foot on the property ladder.

Many are even finding it difficult to find somewhere decent - yet affordable - to rent.

Mr Prescott has now come up with a possible solution: Financial penalties for private landlords who make no attempt to fill their homes and an end to the council tax rebates enjoyed by those wealthy enough to own more than one house.

According to the latest government figures, there are 2,483 empty properties in Brighton and Hove.

The majority - 2,178 - are privately owned. Only 196 belong to the council and 81 to registered social landlords.

But rather than being under pressure to fill the homes quickly, the council tax system offers landlords support if they wish to keep them empty.

This is done by allowing them a 50 per cent council tax discount - worth hundreds of pounds to the local council - as long as the property is unfurnished.

Mr Prescott and his deputy, local government minister Nick Raynsford, are now proposing to give councils the chance to change this.

Under the Bill, they will be given discretionary powers to reduce the discount or remove it altogether.

Mr Raynsford said this would remove the incentive to keep homes out of use.

It would also let councils rake in greater council tax receipts and the extra cash could be spent on low-cost housing schemes.

He said: "Homes left empty for long periods can blight local communities and encourage crime and anti-social behaviour.

"These proposals could be used to encourage owners of empty homes to bring them back into use."

Arguably more significant will be the ending of the right to a 50 per cent council tax rebate on holiday homes.

Under the proposals, this can also be reduced or scrapped.

Brighton is one of the most popular areas in the country for second homes, with scores making the journey from London at weekends.

This is good for the local economy but bad for first-time buyers and the city council's revenue department, which misses out on council tax cash.

Brighton Pavilion MP David Lepper believes these measures will prove popular with Brighton and Hove City Council.

He said: "The council tax reduction is one of the major factors behind the housing situation in the city at the moment.

"It has made the idea of purchasing a second home more attractive and many people have done so.

"However, as demand has increased, house prices have gone up and up. Sadly, this has priced many local people out of the market.

"Reducing or getting rid of the reduction will be of benefit.

"A more long-term impact could be that it will deter some people thinking of buying a second home.

"Dampening down property prices can only be a big help to the many people in Brighton and Hove who are still on low incomes."

Mr Lepper, who has repeatedly highlighted the difficulties faced by young people trying to find a home in the city, added: "It should also be remembered that many of the second homes are the smaller properties. These are the ones which are ideal for young people or first-time buyers but they are being priced out of the market."

The MP believes the council may also embrace the disincentive scheme for private landlords.

He said: "It already has an empty homes strategy that has got around 180 properties back in use.

"I'm sure this will make some landlords more willing to take part and get the place they own back on the market."

The Government has refused to be drawn on a timetable for when the new powers will be introduced but the Bill is likely to be included in November's Queen's Speech.

Mr Raynsford admitted there were still some technical issues to be resolved but insisted these were not show stoppers.

He said: "We have made our policy clear. It is part of giving local authorities greater freedom."

Brighton-based Mike Stimpson, chairman of the Southern Private Landlords Association, said he had reservations about the number of empty properties and believed it was nowhere near as high.

He said: "I can't really accept the figure.

"There are a lot of landlords who are doing everything they can to fill their properties but because it often takes so long to get planning permission to do the work needed they face a lot of delays.

"I also don't agree people should be penalised for working hard and earning enough for a second home."