Somerset Council’s Executive Committee has supported recommendations to buy more council housing stock for the benefit of local people currently seeking temporary accommodation.
The decision comes about as a result of an underspend in the Council’s Housing Revenue Account (HRA) – a legally required, ring-fenced account within the Council’s finances for income and expenditure relating to its housing landlord services, held separately from other general council services. This will increase the number of homes under the Council’s ownership while supporting the General Fund with temporary placement cost control.
The underspend of approximately £3.3m in the 2024/25 financial year, along with a predicted forecast underspend for the year 2025/26, coupled with the increasing demand for temporary accommodation for those at risk of homelessness across the county, brings forward the proposal to acquire new housing stock.
In the short term the new properties would be used to house residents who would otherwise require emergency accommodation, providing a better option for them and also saving the taxpayer money. In the medium term, these would be made available to those bidding for a property through Homefinder Somerset, where there is currently a long waiting list for suitable homes due to a national shortage.
Cllr Federica Smith-Roberts, Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversity said:
Re-directing funding from our HRA reserves in this way is a hugely positive step for Somerset residents and in particular those who are awaiting temporary accommodation placements. The decision is very much a win-win, working to address the increasing numbers of those at risk of homelessness in the short-term, while benefitting our longer-term social housing needs in the medium/longer term.
By purchasing additional new properties in this way, the Council maintains greater control over property suitability, quality and cost compared with temporary placements through B&Bs, hotels or Airbnb accommodation.
It is anticipated that in the region of 15 properties will be purchased to meet demand, however this will depend on property availability and size. Locations for the new properties within Somerset will be determined in due course and based on the areas of highest demand.
