More festivals have been left homeless following the cancellation of Pride House in Clapham Common.

Eastern Electrics Festival, which was due to take place on August 4, will no longer be able to use the common as its venue.

The dance extravaganza was going to run alongside Pride House as part of a series of events celebrating the Olympics.

It was revealed Pride House will no longer be taking place, because organisers could not secure sponsorship.

Organisers were hoping the common could be a hub for the lesbian, gay, bisexual and transgender (LGBT) community during the games, celebrating homosexuality in sport for a period of three weeks.

Eastern Electrics organisers have said the festival will still take place and they are searching for a new home, having already sold 50 per cent of the 17,000 allocation of tickets.

A spokesperson for Eastern Electrics said: "Our beloved Eastern Electrics Festival début was due to take place on Clapham Common as part of a long run of special one-off events celebrating the Olympics, called Pride House.

"After many years of running some of London's most adventurous warehouse parties in the city's greatest spaces, we are very used to the challenges of finding the best space to showcase the music we love.

"We now have a range of extremely exciting alternative locations and we will make a decision shortly on which is the strongest site capable of delivering the ultimate festival experience, with the ultimate sound."

Melanie Oxley, chairman of park group the Friends of Clapham Common said: "The Pride House organisers have pulled out because they failed to raise sufficient sponsorship and I hear a key headline artist cancelled an appearance.

"We have little to add but for some relief that the Common will not suffer 20,000 plus people a day for three weeks.

"On the other hand, we have a great many questions to ask about the way in which this has been handled by Lambeth."

David Robson, chairman of Wandsworth LGBT Forum said: "We are of course really saddened to hear that Pride House will not be going ahead as it intended too.

"It would have been a great opportunity to bring the spirit of the games to the diverse communities of South London and promote commitment to equality on a global stage.

"I only hope that it will go on to exist in some sort of capacity along other Olympic Houses to promote LGBT inclusions in London 2012."