Parish councillors are worried about how former council homes are allocated after a man living alone set fire to his bungalow.

The bungalow in Orchard Close, Merton, near Bicester, was gutted and two bungalows on either side were damaged last week. The man has been detained under the Mental Health Act and the other tenants rehoused.

Parish councillor Ron Leaver said: "The bungalows were built for pensioners in the village. But now they are being let to almost anyone, sometimes to women with a baby.

"We would prefer the bungalows to be let to young couples in the village."

Mr Leaver, who was parish council chairman for 25 years, said it had been in talks with Cherwell District Council's housing department over the concerns. Some tenants were clearly in need of support, which they were not getting. Parish council chairman Robert Kerr said: "Sometimes the bungalows are let to people who are unsuitable for living in a village environment. Merton, for example, has little public transport and no shop. Some tenants do need closer supervision than they receive."

Mark Godwin, a senior housing officer with Cherwell, said the bungalows were transferred to Banbury Homes Housing Association but the council had nomination rights.

An association spokesman said five people had rejected offers to move into bungalows in Merton. He added: "It is true the properties were originally built for elderly people, but these days it is becoming increasingly difficult to let them.

"Social changes mean that elderly people often stay in their existing homes.

"So bungalows like those at Merton were now let to people in general need from the joint housing list run by the association and Cherwell. The bungalows have one bedroom and are only suitable for small households or people living alone."