UP to 200 people a year are declaring themselves homeless in East Lancashire's most affluent borough as housing prices continue to push people off the property ladder.

Now a new 'points' system for allocating council housing has been set up by the council after people apparently desperate for homes began to get 'fussy' over houses offered to them.

Ribble Valley Council officials say the number of people declaring themselves homeless is up 130 per cent on last year -- and they fear many more people may be living in poor conditions.

The figures represent a new twist in the borough's affordable housing crisis triggered by rocketing house prices which are not only preventing people from within the area buying houses, but also forcing up private rents.

That, according to the council's housing manager Christine Grimshaw, has led to an unprecedented increase in people presenting themselves as homeless at the council.

She said: "As a result, our hostels are full all the time and we are struggling to find places for people. Often, they are presenting themselves while living in very poor conditions, such as in friends' houses.

"It is a very serious problem which we are trying to address."

But she added: "We do investigate every case to make sure people are actually homeless, and not just saying they are to shoot up the housing list."

The new allocation system also insists that if people refuse more than two houses deemed to be suitable for them, they will fall down the priority list.

Coun Joyce Holgate, chairman of the housing committee, said: "The number of people declaring themselves homeless is incredibly high and it is because housing prices are shooting up.

"We are looking for a solution, such as affordable housing, but it takes time. We had hoped the Government would help but that doesn't appear to be the case at the moment.

"If people are declaring themselves homeless or telling us they need a house, they really shouldn't then be turning down the ones offered. This new system aims to be fair."

Earlier this year, the Lancashire Evening Telegraph revealed how 600 people had applied to live in just 25 council houses -- making them the most sought after in the country.

By DAVID HIGGERSON