A homeless single mother has hit out at Preston City Council for offering her a home in a "prostitution and drug dealing haven".

Lucy Watson, 31, received an offer for a home in Skeffington Road, near Fletcher Road, a well-known drugs and prostitution hot spot.

The mother-of-two has already waited two years for a property and said housing officials have told her if she turns down the offer she will be put at bottom of the list and may have to wait another two years for a home.

"I do not deem it suitable to bring up children around drugs and prostitution," said Miss Watson, who suffers with depression.

In November 2003 she lost her home near Salisbury, Wiltshire, when she split from her husband.

Since February 2004 Miss Watson and sons, George, seven, and Charlie, six, have lived with her parents, on and off, in their two-bedroom house in Teil Green, Fulwood.

In May 2004 she was offered a home in Ashton but turned it down because it was too far from her sons' school, St Maria Gorreti RC Primary School, Gamull Lane, Brookfield. "It would have meant leaving the house at 7.30am to get the boys to school," she added.

Although the council has transferred its homes to the Gateway Community Association, last week, it is still responsible for the homeless.

Under previous council rules people were allowed to 'bid', using a points system according to need, for five homes every two weeks.

She said despite bidding for about 80 homes she was never offered one, the house in Skeffington Road, which she hadn't bid on.

"It looks like I am going to have to take it as it's not possible for me to stay with my parents for another couple of years.

"I'm just keeping my fingers crossed that it will be all right," she added.

Councillor Carl Crompton, executive member for housing, said: "There is limited social housing available in Preston. Because it's so difficult to find housing for homeless people, we have to carefully consider whether to keep people on the priority list when they turn down offers of accommodation."