The Government plan to withdraw funding for social housing PFI round six will hit Cornwall. Hundreds of planned homes may now not be built.

It was extremely disappointed to receive Government confirmation that funding has been withdrawn for round six housing PFI schemes, said a spokesman for Cornwall Council.

“Cornwall has been working on its housing PFI project for over two years and had last July received formal confirmation from Government of £150 million of credits for the scheme to proceed. The scheme would have delivered 900 new homes across Cornwall, including social rented and shared ownership properties for families and four innovative extra care housing schemes for older people. As the Government’s letter made clear, this scheme had already been given “guaranteed funding support” and the Council has spent considerable time and money in progressing the scheme to this point. The Council had submitted its detailed bid and was ready to go to the market next year. Our scheme was highly deliverable and had a great deal of interest from contractors and investors.”

Cornwall Council cabinet member for housing Mark Kaczmarek told the Packet: “This will have an impact locally, not just in terms of our ability to house local people, but also on some of the construction companies who were hoping to benefit from what would have been £300 million investment into Cornwall over the 25 year contract period.

“I am especially disappointed with the timing of the decision. Withdrawing the funding at an earlier stage of the new Government would have at least ensured that the Council had spent less on technical advice, sites and surveys. We will be seeking some re-imbursement of these costs. However, we are committed to delivering as much of the scheme as we can and we are well placed as the work we have done will stand us in good stead.” “There are over 18,000 households on the Homechoice housing register and house prices are still at 12.3 times average household earnings. Cornwall has pressing housing needs and at least 1,500 homes each year are required. The Council is keen not to waste the opportunity which a portfolio of deliverable housing sites provides. Given this it welcomes the Government’s offer to work with it on a way forward. The Council will be seeking an urgent meeting with officials from Government and the Homes and Communities Agency to discuss some of its ideas for innovative delivery models.”