Almost 1,000 properties are standing empty in Worthing as hundreds of people with no chance of buying a home languish on the housing waiting list.
The borough council is now bidding to get unused properties back into circulation in the wake of a government warning that putting families into bed and breakfast must stop by next April.
Latest council figures reveal there are 193 families living in temporary accommodation, including 17 in bed and breakfast, costing the taxpayer more than £90,000 a year.
Town hall housing officials estimate there are almost 1,000 empty homes in the town, with a further 1,200 believed to be unfit for human habitation and 2,694 in need of substantial repair.
Eleven properties are the subject of regular complaints to the council by neighbours.
A housing spokesman 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.
"They can also present environmental hazards to the neighbourhood and can attract vandalism and other criminal activity.
"In April of that year the council wrote to everyone on the housing register inviting them to reapply.
"As at March 31, 2003, a total of 1,574 applicants were registered as being in housing need.
"With such a high demand for affordable housing, we have a duty to make the best of local resources, including houses currently standing empty.
"For some, the costs 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 the problems they face.
"We want to bring empty properties back into use.
"Our approach will be to advise and support owners wherever possible to overcome the difficulties they may face with this.
"We will use the council's powers to repair and make safe empty houses that are below legal standards, particularly where these are the subject of justified complaints by neighbours.
"We will consider using our compulsory purchase powers where the property is otherwise likely to stay vacant for a long time."
Tony Chasteauneuf, general manager of Worthing Churches Homeless Projects, said: "The issue of empty properties has been a long standing issue.
"We are pleased finally there seems to be more of a focus on addressing the issue.
"It is shameful we have so many empty properties when we have so many people in housing need, not just sleeping rough, but people stuck in the uncertainty of temporary accommodation."
Soaring house prices are pushing rents beyond the reach of many people.
Between March and June this year, Land Registry records show that the average price of a property in the south east rose by 7.4 per cent. Prices have increased by 25 per cent on the same quarter in 2002.
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