Almost 500 families became homeless in Dublin last year. These families included more than 1,000 children, Focus Ireland has said.

The charity, which is working to end homelessness, insisted that more families face the same fate as a result of the Government's refusal to raise rent supplement and to freeze rents.

It said that last December in Dublin, over 300 families, including 726 children, were living in homeless accommodation. However, it warned that this problem is also developing in other cities, such as Galway and Cork.

"It is totally unacceptable that nearly 500 families became homeless last year. This is a homeless and housing crisis which is now developing into a serious child welfare crisis and it cannot continue. In 2013, a total of 20 families a month became homeless in Dublin. Last year, this doubled to 40 families becoming homeless in the capital city alone every month," explained Focus Ireland advocacy director, Mike Allen.

The charity pointed out that many families are living in ‘shocking conditions, packed into tiny hotel rooms for months at a time'.

It said that almost nine in 10 of these families had never been homeless before and in many cases, economic reasons were to blame ‘as rent supplement payments did not cover rising rents'.

"It is now the case that many families and children have no additional problems when they become homeless, but when they lose their home, this impacts on the children in many ways such as development, diet, education and general wellbeing. The parents are also under great stress," Mr Allen emphasised.

He insisted that if something is not done about this problem, ‘the damage done to these children due to the conditions they are forced to live in will deepen'.

"The sad reality is that some will go on to be the next generation of early school leavers, long-term unemployed, homeless, with greatly reduced life chances. This must be prevented as delivering housing now will help protect these children and change their futures," he said.

The charity is again calling on the Government to raise rent supplement rates and introduce better regulation of rents. It also called for tax changes for landlords, so that it becomes financially feasible for them to rent out properties.

It said that if the Government expects people who cannot buy a home to instead rent in the private market, then these rents should be at a fair price.

"The Government must act to create a more secure private rented sector as more people rely on finding a home in this sector. There must be firm action to create a private rented sector where it is possible for people at all income levels to find a secure long-term home like they can in countries such as Denmark and Germany," Mr Allen added.

For more information on Focus Ireland, click here