The man served five months of his eight-month sentence

Phil Sherrard said his client had been "extremely sensitive" to the fact the girl lived nearby when he returned to his south Powys home after a jail term.

He claimed the only other option for the man had been to declare himself homeless and live in a hostel.

But Powys council said another rented home was made available to the man.

The case has led to calls for judges to restrict where offenders can live.

No restrictions could be imposed on where the man, who cannot be named, lived because he had spent less than a year in prison.

The family, who also cannot be identified, left their street to prevent the child having to pass his house each day.

She wouldn't sleep in her bedroom and didn't want to go to school Victim's mother

In a statement, Mr Sherrard said his client had served four months of his eight-month term before moving back to the house "which has been his family home for 15 years".

"This house is held under a tenancy from Powys county council - no alternative accommodation was available to him at that time," he said.

"Our client was extremely sensitive to the fact that the victim of the offence was living in close proximity and has always complied with the authorities' subsequent to his release.

"Our client was willing in the circumstances to move to alternative accommodation, however the only option on offer from the authority was to declare himself homeless and move into a male persons homeless hostel, which for family reasons he was unwilling to do."

But a spokesman for Powys County Council said: "Following substantial negotiatation, the individual was made an offer of tenancy of another independent, self-contained dwelling, which he declined."

'Starting over'

Children's Commissioner for Wales Peter Clarke said the law must be changed to give judges the power to make an order that offenders could not move within a certain radius of their victims.

"I think that is the easiest way to go and I think the government should move quickly to put it into any legislation going through Parliament," he said.

We hear from many young people every year who are terrified because someone has abused them has been released from prison and will return to their community Jonathan Green, Childline

The mother of the girl said it had been upsetting for her daughter when the man had returned.

"It was stressful seeing her go through what she did and all of a sudden he came back and it was like it was starting all over again," she said.

"She wouldn't sleep in her bedroom and didn't want to go to school.

"I didn't like the fact that I had to move, because he was the one in the wrong but, because they couldn't move him, then the only way out was for me to move."

Dyfed-Powys Police Chief Superintendent Gwyn Thomas insisted the situation had been managed carefully by all the agencies involved.

Jonathan Green of Childline Cymru Wales said the case was not unique.