Housing: "We're at breaking point"

10.53.54am BST (GMT +0100) Thu 18th Aug 2005

Many first time buyers unable to afford to stay in their town or village because of rising house prices in Wales says a senior Assembly Member. Michael German, local Lib Dem area AM believes house prices must not be allowed to force people to leave their communities: "Rural areas have been particularly hard hit by price rises", he says.

Last month, the Assembly Government announced a new package for affordable housing , a package Mr. German says left him deeply disappointed.

"The rising cost of housing in Wales is causing problems for essential nurses and teachers, who are hoping to purchase homes in the communities where they serve. The Minister announced £35 million pounds to 'solve' the affordable housing problem - but it wasn't new money, it was just the annual increases announced in the budget.

"The Assembly Government should promote the formation of Community Housing and Land Trusts that would provide housing for the benefit of local communities. These would be particularly effective in rural areas and would offer affordable housing for current and future generations, especially those with a low income, in those areas that affordable housing is now at a premium."

Mr. German added, "We need to invest in and support our local communities if we are to tackle the housing crisis. The Labour Assembly Government has so far failed to get to grips with the pressing issues of limited availability, high property prices and poor quality stock. These are issues that need to be tackled in both rural and urban communities across Wales."

Leader of the Liberal Democrats on Monmouthshire County Council, Phil Hobson says that the housing situation continues to get worse, "Housing is now our number one casework issue and we're are seeing more and more cases every month. Sometimes it feels we're at breaking point. House prices are too high, comparable private rents are higher than in Cardiff, Newport and Bristol and the council and housing association lists are full - you'll be waiting for years.

"The average house price in Monmouthshire is now £186,000, which is well beyond the reach of many young people and families now. There is a serious lack of affordable housing, forcing many to leave local towns and villages. We're seeing a rapid increase in the number of 20 somethings living at home with their parents."

Rising house prices are preventing key workers from getting on the property ladder

Asked what he sees can be done, Cllr. Hobson says: " The Welsh Assembly Government can and must to do more. I would like to see more money being put into the Homebuy scheme, for example, and more encouragement given to local authorities to free up land for affordable housing - not just for rent but to buy as well. We really have to start and tackle the issue and help people get on the property ladder. That way people have a stake in the their future and of their community too."