Council plan to deliver up to 170 new homes for households living out of area in temporary accommodation

Thanet District Council will consider plans to address the ongoing temporary accommodation issue by acquiring or developing up to 170 new homes.

These homes will be specifically for households that are currently living out of the area in temporary accommodation, with the aim of bringing them back into Thanet. 

It is proposed that the cost of the new homes; £38,762,000, forms part of the annual budget across the financial years 2025/26 and 2026/27. This would result in an immediate initial annual saving of £114,000 and more than £1,000,000 per year saved by year 10. The homes are a mix of one, two and three bedroom properties. 

The cost of temporary accommodation has steadily increased in recent years, prompted by the shortage of affordable housing and the rising number of households finding themselves homeless.

Since 1 April 2024, Thanet District Council has prevented 192 households from becoming homeless but there are still so many that are in need.

At present, 303 households are living in temporary accommodation, 146 in Thanet and a further 157 out of the area, with some based as far away as Medway.

The letting of these homes would be in accordance with the Council’s Temporary Accommodation Policy, approved by Cabinet in July 2024. To ensure high-quality, well supported accommodation for residents, it would be managed by the same Tenant and Leaseholder teams that look after the council’s social housing. There would also be a dedicated Temporary Accommodation Co-ordinator to support the tenants while they remain in temporary accommodation and to help them move on to permanent housing.  

Cllr Helen Whitehead, Deputy Leader and Cabinet Member for Housing said: “The social, emotional, and financial strain for Thanet residents of being placed out of area is enormous. It is damaging for families and individuals, places strain on education placements and the management of health conditions, and this is why I have long argued for investment in in-house, local temporary accommodation. This was our priority before we became the administration; now we are in a position to ensure that we provide this level of support for residents, and do everything possible to grow our in-house provision, to ensure social and financial stability.

“The costs of out of area and external placements are financial as well as social, as demonstrated by the fact that an investment of this scale would stand to save £114,000 in the first year alone, with over £1,000,000 per year saved by year ten.

“In 2023/24, the council’s general fund incurred a £1.2 million net overspend due to the costs of  temporary accommodation. Predicting the 2024/25 net overspend is challenging due to the fact that the need for temporary accommodation is based on demand; however, with the need for temporary accommodation consistently growing, here and across the country, we hope to improve the lives of our residents and reduce the costs of temporary accommodation through these planned acquisitions.

“The aim is to build on the success of the ambitious redevelopment of Foy House on Margate High Street and the potential of our new temporary accommodation acquisitions in Ramsgate and Broadstairs to reduce costs and improve outcomes for residents. If approved, this approach has the potential to reduce temporary accommodation costs in future years as a result of borrowing costs being fixed, whereas the cost of using third party, temporary accommodation providers would likely rise.

“People from Thanet need to be able to stay in Thanet. Creating temporary accommodation that ensures that people facing homelessness can stay in the district is vital to them being able to maintain work, school and family connections at a time when they’re most needed. This approach embodies our ambitious and innovative approach to addressing housing need, Should it be approved, it will provide the council with a pathway to address a long standing issue.”

The proposals are set out in a report and will be considered by Cabinet at a meeting on Thursday 19 December.