THE number of families living in temporary bed and breakfast accommodation in Weymouth and Portland has fallen dramatically, new figures claim.

The borough was facing a homelessness crisis earlier this year after figures revealed that about 50 people a month were being housed in bed and breakfast accommodation and that nearly £450,000 had been spent on the temporary homes in 12 months.

Soaring house prices, together with low wages, had been blamed for the acute shortage of affordable houses in the borough.

But now it appears the council is winning its fight against the problem after it was revealed that the number of families who have stayed in emergency accommodation had fallen to 19 in August from 43 in April.

Finance chiefs have warned they are still facing major costs from new Government targets and the way temporary housing is financed.

A full report on the situation will go before members of the council's management committee tomorrow.

Coun Hazel Priest, the borough council's brief holder for housing, partnership and poverty, said the reduction had been achieved through a new tenancy support team based at the Housing Advice Centre and a partnership between the council and the Weymouth and Portland Housing Company.

Under the partnership houses have been leased from the private sector to house homeless families.

Coun Priest, who unveiled a strategy for dealing with homelessness last month, added that an increase in social housing vacancies has also helped reduce the figure.

She said: "Due to efforts made by both the borough council and the housing company a dramatic reduction in the number of homeless families living in bed and breakfast accommodation has been achieved over the last five months.

"The council faces a further challenge of not placing families with children in bed and breakfast, except in an emergency, and will continue with its commitment to meet these Government targets by 2004."

The efforts of the borough council in tackling the homelessness problem have been praised by the Office of the Deputy Prime Minister.

Helen Keats, a member of the ODPM team praised the efforts of the council's tenancy support and housing benefits teams on a recent visit to the borough.

She particularly praised the team for its improvements in the service to homeless people in relation to housing benefit claims.

And she recommended that the details of the council's procedure be included in the Government's Bed and Breakfast Unit's good practice Guide, which is circulated to other authorities.

"This is another encouraging sign that the council is successfully dealing with the problems of homelessness," said Coun Priest.