38,000 now on waiting list for a council home

It comes amid fears that the lists will get even longer as tenants scramble for smaller homes to avoid having to pay the so-called bedroom tax.

But bosses insist they are doing all they can to get people into accommodation as soon as possible.

The number waiting with Sandwell Housing has gone up by 11 per cent from 12,446 this time last year to 13,834.

In Wolverhampton there has been a seven per cent rise from 11,716 to 12,558. Of these, 6,203 are priorities who have a "housing need" according to bosses at Wolverhampton Homes.

Warley MP John Spellar said the figures "painted a very worrying picture" and added: "There is a major problem here.

"There aren't enough appropriate properties around - especially now there are people wanting to downsize, and this is a major problem that is going to get worse."

Under the controversial "bedroom tax" anyone in council or social rented housing faces a 14 per cent or 25 per cent cut in their payments if they have one or more spare bedrooms.

It will leave them potentially paying hundreds of pounds extra a year in rent unless they move to a smaller home.

South Staffordshire Housing Association currently has 2,505 people on the waiting list but bosses said they did not have data for a year ago.

There are 2,907 applications on the waiting list for homes with Walsall Housing Group and a further 906 applications awaiting approval.

Rob Hughes, head of housing tenancy services, said: "In June 2012 we completed a re-registration process to ensure everyone on the waiting list still wanted an affordable home. Before that process started, there were 15,000 people on the waiting list.

"The process means we have a clearer idea of the type of property people want and the extent of housing need in Walsall."

Dudley's list has gone down from 6,687 to 6,352 – but housing chief Councillor Khurshid Ahmed admits there is a need for new houses to be built in the borough. He said: "We are trying to encourage firms to build new properties."

Dudley North MP Ian Austin said: "These figures reflect the failure to build enough homes in this country to replace the ones that were sold off."

The Express & Star revealed earlier this month that more than 700 residents in Wolverhampton, Sandwell and Walsall had asked to downsize ahead of housing benefit reforms.