Cornish housing crisis decades ahead (Devon and Cornwall Liberal Democrats)

Devon and Cornwall Liberal Democrats <info@devon-cornwall-libdems.org.uk>

Cornish housing crisis decades ahead

June 7, 2007 12:00 AM

Local MPs have lashed out at Housing Ministers after confirmation that the national housing crisis predicted in twenty years is already happening in Cornwall. According to new research from the Government's National Housing and Planning Advice Unit, by 2026 housing prices across the country are expected to have risen to ten times average annual earnings. House prices in Cornwall, however, frequently exceed that, as they have risen at an exceptionally fast rate over recent years while incomes have remained well below national averages.

In Truro average house prices have risen to £300,000 - a whopping 16 times average gross annual earnings (median) in Cornwall.

Housing Minister Yvette Cooper has warned that the projected house price rise to ten times incomes nationally will be deeply unfair for first time buyers - ignoring the fact that they are already substantially higher than this in Cornwall.

Commenting, MP for Truro & St Austell Matthew Taylor said:

"The housing doomsday scenario predicted for the rest of the country in two decades time has already been exceeded in Cornwall. With earnings well below national averages and rocketing house prices, families, pensioners and key workers - including police, teachers and health staff - are being priced out of the local market and forced to go elsewhere.

"Despite our best efforts the same Ministers now panicking over the predicted national crisis have simply ignored the situation in Cornwall. It is unbelievable that they have the front to talk about 2026 and do nothing about what in Cornwall is happening right now."

The MPs have been pressing Housing Minister Yvette Cooper for reforms to tackle the lack of affordable housing, including planning procedures to stop more family homes being bought up for holiday use, greater funding to build more affordable housing earmarked for local people, and powers over strategic housing planning to return from the region to Cornwall.

North Cornwall MP and Liberal Democrat Housing Spokesperson Dan Rogerson added:

"These latest national figures will come as no surprise to people in Cornwall where we have already seen a huge and growing gap between incomes and prices. The Government's failure to prioritise the provision of new homes has allowed this situation to occur and the rest of the country is now beginning to see the same problem."