Portsmouth council buys 48 homes as part of £31m plan to tackle homelessness
Council has made progress with its plan to buy 200 temporary homes for the homeless, with 48 already completed.
In March last year, councillor Darren Sanders, the cabinet member for housing and tackling homelessness, signed off £31.28m to purchase 200 homes, phasing out £15.64m in 2025/26 and £15.64m in 2026/27 through unsupported borrowing.
The council, like all local housing authorities, has a statutory duty to provide temporary accommodation (TA) for homeless applicants under the 1996 Housing Act.
Demand in Portsmouth
The number of households in TA rose by 54 per cent in the twelve months up to April 2024 to more than 500. Costs also rose by 84 per cent.
This resulted in a budget overspend of £5.9m reported in 2024/25.
However, the council has argued its new allocation policy, strengthened focus on preventing homelessness and purchasing TA properties has contributed to a 38 per cent reduction in the “average nightly temporary accommodation rate since its peak in October 2024”.
The number of households in TA properties owned by the council grew by 30 per cent to 53 per cent up to December 2025, reflecting the “positive effect of properties acquired under this project”.
The number of households in nightly paid privately managed TA reduced from 32 per cent in October 2024 to 10 per cent on 31 December last year.
Current progress
The council has purchased 48 homes so far under its TA capital fund. Of these, 18 are one bedroom and 30 are two bedroom flats or maisonettes.
Additionally, some 65 properties are in the process of being bought, with 24 currently in the legal stages.
The average price for a one bedroom flat has been £116k and £158k for a two bedroom property.
Stakeholders
A residents’ consortium spokesperson asked officers what is put in place for “damaged” individuals before they are placed in a shared house.
Officers clarified that everyone has their needs assessed, with wrap around approaches involving partner organisations and charities to ensure everyone gets the support they need.
Cllr Sanders welcomed the suite of measures to address the demand for TA, stating that other councils, particularly in London, are going bankrupt due to homelessness applications.
He criticised the distinctions between those eligible for preventative or relief services, arguing that all people affected by homelessness should be treated equally, and welcomed recent language from central government’s blurring that distinction.
He added the suite of measures adopted by the council will help house the city’s most vulnerable while saving the council taxpayer money.