A report by the Welsh Audit office has found that Monmouthshire faces 'a growing housing crisis'.

The Welsh Audit Office's Service Based Review studied how environmental health, housing, and waste management services have been handled in relation to reducing budgets.

The report found that Monmouthshire County Council 'faces a growing housing crisis', with 'most stress indicators showing a decline in performance coupled with a growing demand for services'.

The review reported that Monmouthshire's housing service capacity is 'extremely limited', and that funded preventative measures 'have been suspended'. The report concludes that the housing budget 'is not sufficient to meet current costs' and 'the homelessness 'spend to save' prevention budget is not sufficient to provide the level of prevention work required'.

Although Monmouthshire has the lowest rate of homelessness in Gwent, the rate of homelessness has grown significantly. In 2008-09 Monmouthshire County Council dealt with 204 cases of homelessness. This fell to 154 in 2009-10, before rising back to 200 in 2010-11. In 2011-12, the council dealt with 360 cases; an 80 per cent increase in a single year.

The numbers occupying temporary accommodation has remained the same (the second highest in Gwent); an indication, the report highlights, that the council has limited choices available to effectively discharge its homelessness duties.

Exacerbating this problem is the growing demand for social housing, reducing the availability of homes which the council will require to effectively address homelessness.

Lettings of social housing have dropped by 17 per cent compared to lettings in the 2008-09.

A similar crisis appears to face the availability of affordable housing. Since the 2008-09 period the availability of affordable housing almost doubled, from 101 to 191 units, but current projections for the 2012-13 and 2013-2014 periods show only 114 and 113 units respectively will be available; almost half the current rate.

In addition the effects of this will be exacerbated by reductions in capital available for new housing developments; The Social Housing Grant has been reduced to £1.3 million in 2012, compared with £5.6 million in 2009.

The success rate of homelessness prevention work has significantly diminished in recent years. In the 2011-12 period the county had a 30.4 per cent prevention rate, compared to a rate of 74.8 per cent in 2008-9, and is well bellow the Welsh average of 60.5 per cent .

Monmouthshire also has the lowest rates of private sector improvement through council investment; it has invested in improving no properties across the 2008-2012 period.

In addition, there appear to be no reliable accounts of the condition of private properties in Monmouthshire. The report notes; "The council also does not have accurate or comprehensive data to determine the condition of private sector housing in Monmouthshire with the last private sector housing stock condition survey completed ten years ago."

The Monmouthshire Labour group has criticised the county council for its handling of housing and homelessness in the county. Councillor Dimitri Batrouni, leader of the Labour group, has claimed the report 'shows the Tory/Lib Dem council have failed to foresee and act on a growing problem in a vital area: housing and homelessness'.

"It is clear frontline staff have been doing a fantastic job, but they have been let down by the Tory/Lib Dem cabinet, failing to provide leadership at a critical time," he said.

Cabinet Member for Environment, Public Services and Housing County councillor Giles Howard responded to the allegations, citing the upcoming Autumn Housing Bill as a response to the housing problems faced by the county.

"Firstly, we will have a power and an expectation to use the private rented sector to discharge our homelessness duty. Secondly, we will have to respond to a new duty to 'take reasonable steps' to prevent homelessness, if threatened within 56 days.

"A further demand will be that our duty to prevent homelessness will not be restricted to Monmouthshire residents, but to anyone who presents themselves at our door.

"This has caused concern at other authorities because the priority needs of ex-prisoners are also under review, as are those of rough sleepers.

"All members must be aware and concerned about the pressures of homelessness and will have a desire to ensure that this Council can best meet that demand. With the advent of the Housing Bill later this year, there will be some massive changes to delivery to which we will have to respond. The strategic housing team has already begun a programme of work, and is also working regionally with the WLGA and jointly with Torfaen.

"We all believe that prevention is better than cure, but the answer is not to jump in with off-the-cuff proposals designed to get a headline, but to plan for the long-term and work with all partners to get the right solution in place."