Council officials agreed to move more than 50 homeless families into a hotel even though it had no planning permission.

The blunder only came to light as a result of enquiries by The Argus.

Now Brighton and Hove City Council has admitted the error, which has put it in breach of its own planning regulations.

The mistake could mean enforcement action being taken by the planning department to rectify the housing department's actions at St Catherine Lodge Hotel in Hove.

The council planning department is demanding an application be submitted "within days" for retrospective change of use from a hotel to a hostel. A decision on the future of the premises would then be left to the planning committee.

A spokeswoman for the council said: "Yes, it's a potentially embarrassing situation. We are disappointed by the lack of communication both internally and externally but it was done in desperate circumstances."

The hotel in Kingsway was sold for an undisclosed sum two weeks ago to London-based Top Class Investments, a firm that specialises in providing accommodation for homeless families.

The council's housing department was offered the opportunity to block book the entire 51-bedroom property in order to ease the strain on its waiting lists for temporary accommodation.

The first nearby residents knew about the decision was when they saw workmen carrying bunk-beds, small cookers and fridges into the building, which is in a conservation area.

After a query by The Argus, the council began an investigation into residents' concerns only to discover it was its own housing department that was responsible for the unapproved change of use.

The spokeswoman said there was pressure to find temporary housing for homeless families.

Hotel manageress Helen Miller said she was too busy to speak to The Argus.