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ACTION DEMANDED ON HOUSING CRISIS

November 12, 2008 3:00 PM

The government has been challenged to provide an emergency boost to tackle a growing affordable homes crisis in Cornwall sparked by the credit crunch.

Both Julia and Matthew Taylor, MP for Truro and St. Austell, spoke up for Cornwall during a special debate in Westminster this morning. They warned that lack of mortgages and a crash in property building is leaving increasing numbers of families stranded for a home.

In the debate: 'Housing supply in the current economic situation', both Julia and Matthew stressed that the current economic climate is bringing challenges to the provision of housing, especially affordable housing.

The proposals included:

• Government to take action with the banks to ensure a supply of mortgages to families buying affordable homes - many mortgage companies are now refusing any mortgages for affordable homes.

• Bringing forward government spending plans for investment in housing over the next three years, to deliver the maximum practical number in the coming year. This would both provide much needed homes and protect construction jobs.

• Encouraging councils to take out leases on unsold private properties to make them available to rent for local families on the housing register, helping them and also helping those unable to sell properties.

• The MPs also urged the government to increase funding for the Citizen's Advice Bureau, which is currently struggling to deal with a rising tide of people needing help with their financial and housing circumstances.

As Communities and Local Government spokesperson for the Liberal Democrats, Julia is behind Liberal Democrat plans to decentralise housing targets and give local communities greater flexibility to address their housing needs. Matthew Taylor recently published his report to the Prime Minister 'Living Working Countryside' about community led affordable housing in rural areas, with the government due to respond imminently.

Commenting, Julia said:

"Most importantly, the government needs to learn to mistakes of the past and start planning now for the long term, rather than the short termism we have seen in the past.

"The Conservative government passed a legacy of negative equity, homelessness and a depleted stock of affordable housing on to Labour in 1997. That must not be repeated in this new recession. The government has a duty to act early to help local families avoid the worst of the 1990s recession, and instead help provide the supply of affordable homes and financial support local families so desperately need."

Matthew Taylor added:

"The credit crunch hasn't made housing needs go away - affordable housing is now more important and urgent than ever. But the collapse in private development is also causing a huge drop in delivery of affordable homes required as part of these developments. It is essential that the government brings forward funding already earmarked for affordable housing.

"In addition, Councils should be encouraged to lease the private properties which people can't sell, to provide homes to rent for those on local housing waiting lists. It makes no sense for houses to sit empty whilst waiting lists for social housing increase."

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