Last October the National Housing Federation warned that the Government’s housing budget plans amount to a 63% cut.
As well as slashing funding for new homes, the Comprehensive Spending Review reversed Labour’s decision to fund the building of new council housing and to allow local authorities to keep the proceeds of any housing sold under the right to buy – instead, 75% must go to central Government.
The clampdown on mortgage finance and slowdown in the housing market means more people renting.
This month, an independent report confirmed that rents increased by 4.2% during the last year.
Add to this the cut to housing benefit – and, in Cornwall, the Council delays in payment of housing benefit, plus Council cuts of up to 40% in housing support and advice services.
It isn’t surprising that Cornwall’s register of people in housing need has grown by the equivalent of an additional district council list to 19,000 households looking for a home.
Allowing the market free rein in development is not the answer to Cornwall’s housing needs. The practical barriers which make housing unaffordable need to be removed.
