That's what outraged mum-of-three Terry Dixon was told when she asked housing group gentoo for a bigger home so her daughter could have her own room.

The 26-year-old from Rochdale Road, Red House, was stunned when she found out that a 1930s law meant her downstairs rooms could be counted as bedrooms if they were big enough to sleep in.

"It's just ridiculous – I couldn't believe it," said Terry, who lives with husband Thomas and children Ryan, six, Aaron, two, and Abby, one, and is expecting another baby.

"I was told the sitting room could be classed as a bedroom and the kitchen could be classed as a bedroom.

"How can you be expected to let your kids sleep on the floor? If I did make the kids sleep in the kitchen I'd probably get them taken off me."

Gentoo now admits the family's situation is not acceptable and has agreed to try and help resolve the situation.

Councillors at a committee meeting last week on homelessness were shocked when officials told them of the 75-year-old law on overcrowing which has been condemned as "Dickensian" by housing charities.

Officials confirmed that legally downstairs rooms could be counted as bedrooms.

Councillor Denny Wilson, who was contacted by Mrs Dixon for help, said it was very distressing.

"It's 2008 now and we're still operating on 1935's definitions - and I think it's something that's got to be changed," he said.

Labour councillor Ellen Ball, who represents Ryhope, said: "I can't believe that you're sitting there telling use people can sleep on the floor.

"I'm one of seven and we lived in a three-bedroom house with my brothers in one bedroom and me and my sister in the other.

"But I'm 58 now and I'm going back 50 years ago when we had those conditions - I can't believe it," she said.

"Why can't we change the law?"

A spokeswoman for housing charity Shelter said: "It's almost Dickensian and it's something we strongly believe should be updated because it means families are being denied the rights of privacy and space."

Ian Porter, Managing Director of Gentoo Sunderland said: "The family last applied for a property transfer with gentoo in October 2007 and have no application registered with the city council.

"Whilst gentoo or the council have not been asked to make any statutory overcrowding assessment, clearly their current housing situation with three children in a smaller two bedroom property is not suitable.

"I will arrange for a member of staff to visit the family to see if there is any way we can help to resolve the situation."