Housing experts have said the Bank of England's decision to hike its interest rate by another quarter of a per cent - to 5.75% - will mean more people will be priced out of the market and forced to look to social housing.

While the rate rise will mean more mortgage misery for homeowners, there are implications for those waiting for accommodation in social housing stock.

The most recent figures from the Northern Ireland Housing Executive show there are 31,908 people on the social housing waiting list - 9,749 of whom are homeless. And a Housing Executive spokesman confirmed: "The waiting lists are getting longer".

The figures reveal there was a major rise in the number of homeless people in 2005/2006 - up by almost 1,300 (8,470 to 9,749). Figures to be announced next week by the Minister for Social Development are said to be " relatively unchanged".

But waiting lists have grown by 4,200 in 2006/2007.

A Housing Executive spokesman said: "This rapid growth was to a considerable degree due to growing homelessness, associated with the increasing incidence of marital, relationship and sharing breakdown."

But Mr Chris Williamson, chief executive of Northern Ireland Federation of Housing Association said: "Increased interest rates are bad news for affordable housing. It makes it harder for purchasers, especially first time buyers, to afford home ownership. As a result, more households apply for social, rented and Co-Ownership housing - both of which are under-resourced."

He added: "Housing associations also face higher repayments on the private loans they must use to part-finance any new and existing homes. This puts upward pressure on rents."

With fewer re-lets among social houses and Housing Associations unable to compete with developers for land, fewer houses are coming into the supply chain. The knock-on effect is fewer tenants are moving on as there is nowhere to go.

And the problem is province- wide. The Housing Executive says the increase in "housing stress" in Belfast is now a trend in Newry, Fermanagh and Dungannon.

Homeless charities fear another interest rate rise will have repercussions for the most vulnerable people in society.

David Carroll, director of development at the Simon Community, said people currently living in hostel accommodation but trying to move back into the community, could face rent hikes. "Our major concern... is in relation to those with buy-to-let mortgages."

He said that, for many people living in hostels, the only route back into the community is via the private rented sector with the help of Housing Benefit.

But he added: "Because of the difference between Housing Benefit and interest rates, vulnerable people are frightened they won't be able to meet the rental costs."