CLAIMS that a council has cut homelessness have been attacked by charities dealing with the issue.

Redcar and Cleveland Borough Council said its new prevention-rather-than-cure policy was a success, after a 32 per cent drop in homelessness applications.

But the Teesside Homeless Action Group charity said that people were being discouraged from applying for housing to keep figures low.

The council figures show applications for housing reduced, from a peak of 1,141 in 2004-5, to 835 last year. Successful applications, which peaked at 587 in 2004-5, dropped to 369 last year, a reduction of 37 per cent.

Councillor Chris Abbott, the council's cabinet member for housing and neighbourhood renewal, said mediation was the key factor.

He said: "One of the problems that keeps recurring is young people fall out with their parents and go into a flat, then find they can't cope.

"They end up getting evicted, go back to their parents, fall out again, and rather than just put them on a waiting list, our officers go out and visit them at home, with their parents, and mediate.

"It is something I feel very strongly about - rather than just let people be homeless, we try to prevent it, and we have been very successful. I think we have exceeded our expectations, and we hope to do more."

The council hopes to extend its service by appointing homelessness prevention officers in the summer.

But Francis Owens, group manager for Teesside Homeless Action Group, said: "If that represents a fall in homelessness, then someone, somewhere is telling porkies.

"A lot of people have not been allowed to make homeless applications - they are discouraging people from making applications to keep the figures low. The figures themselves are not a true reflection of the situation.

"It is getting worse because of two simple things - the mass demolition of social housing and a decrease in funding."

Bob Finch, Shelter's North-East anager, said: "We applaud Redcar and Cleveland for any fall in homelessness in the North-East brought about by positive work to prevent people from losing their homes in the first place

"Nonetheless, there are still 74 households trapped in temporary accommodation in Redcar and Cleveland alone."

He added: "Ministers must address this crisis nationally, by ensuring there are enough social rented homes for those in the greatest need, who simply can't afford to buy, whether on their own or with Government help, or even rent."