Plymouth council set to spend millions on housing crisis

£10 million will be borrowed to purchase 50 temporary homes

Homes will be bought by Plymouth Council at a cost of £10 million to help ease the city’s housing crisis.

The council’s cabinet has agreed to borrow money to purchase around 50 properties to use as temporary homes.

It will also be bidding for a grant of between £3 million and £5 million from Homes England.

Demand for temporary accommodation in the city has more than doubled with the number of households requiring homes rising from 160 to 413 (158 per cent).

Many families are now live in B&B establishments and short stay holiday lets as there are no homes available.

Like other cities, Plymouth is facing a homelessness crisis brought about by  the cost of living and the economic impact of the pandemic.

These have significantly affected the housing market and people’s ability to meet day-to day bills such as rent, mortgage, utilities, food and travel. Inflation and the lack of affordable housing has resulted in further demand for housing and homelessness services.

The council needs to find £2.4 million to support homeless people and says it can make savings of more than £1 million a year if it buys properties.

Cabinet member for housing and communities Cllr Chris Penberthy (Lab, St Peter and the Waterfront) said it would ease pressure on families and have less impact on children.

“We have done the sums. An average family in temporary accommodation costs £23,000 a year. Once we have figured in all the costs, we can make savings of £16,000 and provide them with a temporary home which is exactly that and not a stop-start solution like B&Bs. This will give them something more stable.

“We are putting our money where our mouth is in terms of how we treat people.”

Councillors heard how 366 children currently live with their families in temporary accommodation, including 83 children in B&Bs and 35 under fives. B&B stays are limited to two weeks, so families are being moved around.

Children are being moved away from friends and schools, have to share rooms with siblings and parents, and often have nowhere quiet to do homework or revise for exams.

Cllr Penberthy said many families are finding themselves in a situation they have never experienced before because of section 21 ‘no-fault’ eviction notices from landlords who have decided to sell up. Many of these people were working and not claiming benefits.

A shortage of homes to rent meant that there are up to 100 enquiries for each one that becomes available.

He said he did not want anyone to suffer in silence. “We know people are saying they can manage and there will be something else, but it’s not like that any more. I want them to come to us. Please don’t be afraid or ashamed. Come to us as quickly as you can and we can begin to plan together.”

Council leader Tudor Evans (Lab, Ham) saidthe rise in people coming through the council’s doors for help is “alarming.” He said the authority’s action in allocating the £10 million was “proportionate and timely” and it would give hope to hardworking staff. “This money will help our staff to help people,” he said.