Housing is the department hit hardest by Government cuts

Communities and Local Government, the department in charge of housing and planning, is the biggest loser in government departments following the spending review, and is to have its budget cut by 51% over the next four years.



But some of the cut is due to £1.6bn being devolved to local authorities. Without this, the cut would be 33%.



The cut includes a reduction of around 50% in the social housing budget, with the inevitable result that more and more tenants will flock to the already-strained private rented sector.



The review announced an investment of £4.5bn in building 150,000 affordable homes over the next four years, whilst a consultation paper on the new homes bonus scheme – to be introduced next April – is due out next month.



The Chancellor also announced that from 2012, single people under the age of 35 will be paid housing benefit at room rate rather than for a flat. The room rate is lower than other housing benefit payments and is currently paid to claimants under 25. It is based on the rent for a single room in a shared house.

 It could mean that younger, single people who lose their jobs will have to move from their own rented homes into HMOs.

The Government expects that raising the age at which room rate can be paid will save taxpayers £215m over the next four years.