Benidorm has long been cherished by British holidaymakers as a sun-soaked, budget-friendly escape, but is now revealing a darker side, where the dream of a life in the Spanish sun has turned into a nightmare for a growing number of British expats.

Just streets away from the bustling Irish pubs, karaoke bars and lively parades of Benidorm's New Town, a growing community of Brits are now living rough in makeshift shelters, without running water, electricity or even the basic security of a roof. Displaced by soaring rents and overwhelmed by bureaucratic red tape, many are now forced to squat or sleep in dilapidated encampments hidden behind the town's tourist facade.

The cause is a surge in BnB-style vacation rentals and property investment, which has pushed housing costs beyond the reach of ordinary residents. While tourists flock to Benidorm for sun, sea, and cheap drinks, locals, including many long-term British residents, are being priced out of their own homes.

Jodie, a British woman who first moved to Benidorm in 1994, described how her life unravelled after Brexit.

Now considered an illegal immigrant in Spain, she says she's unable to work or access social services. "We need help," she told MailOnline. "I went to social services begging and they gave me an appointment three months away. We missed it because we don't have internet. We literally have nothing."

Her makeshift community of Brits, Spaniards and Albanians now survives together in a garbage-strewn encampment, nestled behind rows of luxury hotels and holiday flats.

"When I first moved here, everyone was on the streets alone. But I've made a little community," Jodie said. "We've got to help each other out, little by little."

Charity worker Jonny Elraiz, who runs the City Streets Community Project, delivers food to those living rough in Benidorm. He says some are working full-time but still can't afford rent.

"The average worker earns €1,100 a month. A shared flat can cost up to €400 a week, it just doesn't add up," he said.

Jonny also assists stranded Brits, some of whom've lost passports or ended up in jail, and helps them return to the UK. But many are left in limbo, unable to get home or find legal shelter.

It comes after it was reported British tourists are turning their backs on a popular seaside town in Majorca. They're instead opting to visit Benidorm which is reportedly "more welcoming".