'Biggest ever' temporary housing investment approved in Portsmouth
Over £31 million pounds will be spent on providing housing for the city's homeless
Portsmouth City Council has approved the largest investment in tackling homelessness “the city has ever had”.
At a recent cabinet meeting, councillors agreed to invest £31.28m in at least 200 properties to be used for temporary accommodation.
The number of people needing temporary accommodation has risen by 54 per cent in 2024/25, putting huge financial pressure on the council. Without action, the council is projected to overspend by £5.9m by the third quarter of the year.
The investment, which will be funded through borrowing, is expected to save up to £6m per year by 2028/29. However, there will likely be annual budget shortfalls for the next 10 years, amounting to £1.87m in total.
The properties will be rented out at affordable rates, which will not exceed the local housing allowance, ensuring the costs are covered by housing benefits.
Councillor Darren Sanders, cabinet member for housing and tackling homelessness, said: “This is the biggest single investment in homelessness this city has ever had and it’s about time because too many people are living in homes that are too dear for them and for the council.
“I’m certainly aware of the potential this programme has to distort the marketplace in the city, I won’t sugarcoat that. However, when you’re in a crisis, you should stop digging.
“We can’t afford to have £6m being paid by people’s council tax and grants, so we’ve got to get it down. My view has always been that we go big or go home, and this council has decided to go big so everyone can have a home to go to.”
Cllr Mary Vallely added: “This is great news for our city and for the homeless people that belong to our city.”
The council plans to spend £15.64m in both 2025/26 and 2026/27 to buy and renovate properties, which will be managed within the council’s Housing Revenue Account.
To help cover any early financial shortfalls, the council has approved a £1.87m reserve contribution. A financial review estimates the scheme will generate £44.8m over the next 50 years.