Homelessness has reached crisis levels and been made the top priority by Brighton and Hove City Council.

The city has become overwhelmed by the growing number of people desperate for somewhere to live.

Many say the city can no longer control the spiralling numbers without Government help and a national housing strategy incorporating jobs, opportunities and homes.

The number of families being accepted as homeless is at a record level and the cost of putting them in temporary housing is making a big dent in the city council's budget.

The rise is being fuelled by the booming property market, which is pushing up rents and encouraging landlords to sell up.

People are flocking to the city in search of opportunities lacking in their home towns.

Council leader Ken Bodfish told Brighton and Hove City Council's policy committee that Deputy Prime Minister John Prescott was lobbied on the issue when he visited Brighton on Tuesday.

The council has also called for help from housing minister Nick Raynsford.

Coun Bodfish said: "There is a crisis and we welcome as many councillors as possible lobbying the Government.

"The problem of homelessness affects a whole range of people and we have to make it a priority."

Opposition Tory leader Brian Oxley said: "The Government is closing down the private sector for homeless people through housing benefit levels."

Jackie Lythell, finance Cabinet councillor and deputy leader, agreed, saying: "Housing benefit levels are of great concern.

"We have to get the Government to accept that in a place like Brighton and Hove they should be based on the private sector rather than council housing."

The policy committee said officials should continue to make severe savings now the council faces being £5 million over budget at the end of the financial year.

Coun Oxley said new projects kept being tried without realising how much they would cost.

He said: "There is a slipshod attitude towards the long-term implications of council schemes."

Coun Lythell said the main aim of the council should be to fund and provide basic services.

But she added: "If we are to continue to be a vibrant city, we have to be at the cutting edge of new ideas.

"We don't have manufacturing industry and we need the creative industries to help provide more jobs."

The Argus reported last month how families are facing a five-year wait for a council house because of the crippling homes shortage.

There are 3,000 people on the waiting list in Brighton and Hove, with 1,000 more expected by the end of the year.

A further 1,800 tenants are waiting for transfers to more suitable properties. In the past year, fewer than 1,000 homes have become available.

More council tenants are buying their homes, reducing the number available to let.

The growing crisis has led to more than 300 people being placed in bed and breakfast hotels while 100 are sleeping on friends' floors or other temporary accommodation, known as "sofa surfing" among housing workers.

John Holmstrom, manager of Brighton Housing Trust's housing aid and legal centre in Queens Road, said: "I completely welcome the priority the council has given to this issue. It is quite understandable that the council is in crisis.

"Every effort is being made by the council, the housing associations and voluntary organisations but we are being overwhelmed by a crisis which is in a sense beyond our control.

"Agencies such as ourselves are stretched to the limit, hostels are continually full and find it difficult to move people into longer- term accommodation and that blocks up hostel places.

"I think we do need Government help to stabilise an extremely complex problem."

The trust, which works alongside the council placing homeless people and helping people apply for council housing, is finding its services squeezed.

Mr Holmstrom estimated up to 4,000 people a year were applying for accommodation after being made homeless but the council was only able to help 32 per cent of them.