Some 10,000 households are considering leaving Brighton and Hove in the next three years due to a lack of low-cost housing, according to a new report.

The 2005 Housing Survey has revealed that the city has the highest rate of low-cost housing in the South-East. But there is still not enough properties to meet demand and families are planning to move away in search of cheaper housing.

Don Turner, chairman of the city council's housing committee, said: "Overall, we are pleased to see that we are on the right track with our housing strategy but, after allowing for the planned building of new low-cost homes, extra care and sheltered housing schemes, there is still going to be a substantial shortfall."

The situation is made worse by the national trend of an increasing older population, the survey has revealed.

By 2026, it is estimated that there will be 5,500 more people living in Brighton and Hove over the age of 80. Sheltered housing will need further investment in the coming years to meet increased demand.

Brighton and Hove City Council is currently debating housing need in the city and could set a target of building about 11,000 homes in 20 years.

The survey was commissioned by Brighton and Hove City Council in partnership with five other East Sussex local authorities. A questionnaire was sent out to 14,000 households in the city.

Coun Turner said: "We are doing our best as a city council to tackle our acute housing problems which stem from inflated property prices, over-crowding and lack of available land. I am especially pleased to see that the survey's findings bear out the fact that we work hard as a city council to meet the needs of local people.

"What we need to do now is look more closely at the information we have before us and understand the implications for our city's continued economic prosperity.

"Brighton and Hove is a burgeoning commercial, educational, tourist and cultural centre with a large transient population and diverse housing needs. This survey will help us to continue to work to match the needs of residents to all forms of housing in the city."