The new owner of Praa Sands Holiday Park, near Helston, say the residents, some of whom have lived there for 10 years, were breaching planning laws.

Owners say the regulations only allow them to live on the site for only eight months per year.

Kerrier District Council said it was working to resolve the situation.

Enforcement action

Some of the 70 people have spent up to �100,000 on their homes and say they cannot afford to move elsewhere.

Resident Dianne Elliott said: "We've spent every single penny we had into making this nice and comfortable.

"Me and my husband only have our state pensions. As soon as that comes in, all the money goes out on paying the overdraft."

David Sillifant of the council said the authority was acting as a broker between the parties, but wanted to ensure any deal would not make anybody homeless.

He said: "Because of the conflict between the housing issues and planning issues, we've decided not to take enforcement action.

"We're trying to broker a solution between the two sides that hopefully will make nobody homeless in the process."

The council said it would work for "as long as it takes" to solve the problem, but that some people would be encouraged to "regularise their situation" by applying for planning permission to stay, depending on their circumstances.

New owner the Haulfryn Group acquired the site in February and said it was merely following the planning restrictions on the properties.

The company added that it was working with the council to "try and minimise the impact on those concerned".