Homeless crisis feared as cuts put districts out of bounds

EXPERTS have predicted a rising tide of homelessness could engulf Yorkshire’s sought-after “Golden Triangle” as welfare cuts start to bite while affordable accommodation remains critically low.

The area between Leeds, Harrogate and York, which has long contained some of the most exclusive properties in the North, is now proving unaffordable for a soaring number of residents unable to find a home in the shadow of £1m-plus properties.

Local authorities fear they will struggle to contain the problem, with Harrogate Council set to embark on a major overhaul of its housing needs team and York Council – where a 57 per cent increase in homelessness was recorded earlier this year and two-thirds of people on housing benefit will soon be priced out of the private rental sector – treating it “as an issue of huge importance”.

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The stark warning comes after a leaked letter from the private office of Communities Secretary Eric Pickles emerged over the weekend predicting that the coalition Government’s plans to cut welfare payments risks making 40,000 families homeless.

Liz Hancock, centre manager of the Harrogate Homeless Project which has been operational for the past 20 years, said: “This is the hidden problem inside the golden triangle. We have seen a significant rise in the number of people we are receiving. For people trying to move into private rented property in Harrogate it is really difficult at the moment.

“We have a real shortage of landlords that are prepared to take people on housing benefits.”

In a report seen by the Yorkshire Post, Harrogate Council has warned its housing needs team, which has successfully tackled homelessness acceptances since 2005, is now dealing with around 4,500 enquiries a year and requires an overhaul to cope with increasing pressure once the cuts take root.

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Coun James Alexander, the Labour leader of York Council, said the local authority had dramatically increased house building targets and reversed planned cuts to homelessness prevention to try and stop the problem spiralling out of control.

“Our council officers are very concerned about this,” he said. “This is a problem that is happening to a broad section of people and is an issue of huge importance.”

Latest figures from the National Housing Federation show the average house price in the Yorkshire and Humber region is now £153,736, while the average income is only £19,000.

In North Yorkshire, the scale of the problem is even more acute, average house prices standing at almost £210,000 while average earnings last year were less than £19,000. Across the golden triangle, average house prices are up to 12 times the rate of average income.

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“The golden triangle is a very desirable area in which to live – however, there is a growing and hidden problem of homelessness,” said Michelle Park, National Housing Federation Yorkshire and Humberside lead manager.

“People have been turning to the social housing sector for help in these difficult times, however there are simply not enough social homes to meet demand.

“Current proposals to reform housing benefit and the way social housing is funded mean things could get much worse.

“The vulnerable are being hit the hardest and thousands of people could lose their homes. Demand will increase dramatically yet supply lags so far behind.”

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The leaked letter from Mr Pickles’ private secretary Nico Heslop appears to reflect deep concern in his Department for Communities and Local Government (DCLG) over the plan to cap total household benefits at £500 a week.

It warns that the estimated £270m annual savings from the plans could be wiped out by the cost to local authorities of rehousing families who can no longer afford to pay for somewhere to live.

And it claims the welfare cuts will put at risk at least half of the 56,000 affordable homes to rent which the Government hopes will be built by 2015, as contractors doubt whether they will be able to recoup their costs from tenants.

A spokesman for Mr Pickles said: “We are fully supportive of all the Government’s policies on benefits. Clearly action is needed to tackle the housing benefit bill which has spiralled to £21bn a year under Labour.”

A DCLG spokesman said: “The Government is committed to tackling and preventing homelessness, working in partnership with voluntary sector partners, local authorities and housing associations.”