Devon 'running out of housing options' warns report

High prices and low incomes have caused the housing crisis in Devon, according to the report

A "housing emergency" in Devon has been caused by high property prices and low incomes, a report has found.

The Devon Housing Commission report said more and more families were being priced out of the market and placed in temporary accommodation.

The housing crisis was affecting public services, the economy and care and health services, according to the report.

The commission has called for a new "development corporation" for the county and for action from the government.

The report found there was an "acute shortage" of affordable homes available in places such as Exeter

The report found house prices were inflated by middle-aged and younger people moving in from more expensive areas - mainly London and the South East - while local younger people were leaving.

The Housing Commission is a partnership, supported by University of Exeter, between eight district councils in Devon, Torbay Council and Devon County Council but does not include Plymouth City Council.

Lord Richard Best, chairman of the commission, said: “There is a real housing crisis in this county.

"The problem is an acute shortage of homes affordable for the next generation.

“Homeownership is beyond the reach of first-time buyers and it is virtually impossible for those on average incomes or less to obtain a rented home that is both available and affordable.

"Devon is simply running out of any housing options."

The popularity of places like Salcombe has led to South Hams experiencing a 245% increase in the need for temporary accommodation

Lord Best said there had been "a dramatic rise in numbers of people, particularly children, that councils have had to place in temporary accommodation, and the consequent, alarming increase in costs borne by Devon’s local authorities".

The report found between 2018 and 2023 Mid Devon District Council reported a 205% increase in the number of people needing temporary accommodation.

West Devon reported a 189% increase and South Hams reported a 245% increase.

For South Hams, total spending on temporary accommodation had gone from £175,000 a year to £500,000 - representing 5% of the entire council budget.

The report said council auditors predicted this cost to quadruple and there were fears "these trends could potentially drive some local authorities toward insolvency".

Lord Best also said a shortage of affordable homes in Devon was exacerbating the situation.

He said: "Historically, Devon has not built enough affordable homes and current trends show that the position is getting worse."

Council tax on second homes will be doubled in places like Sidmouth in east Devon

The report said in some areas of Devon the amount of privately rented housing has declined "by substantially more than elsewhere, partly because long-term lettings for locals have been switched to short-term Airbnb-style lettings for tourists".

The commission recommended councils across Devon adopt the policy to double council tax for second homes, as has been done in East Devon.

'Master developer'

The commission has made a series of recommendations to address the housing crisis.

These included local authorities working together on a Devon-wide housing strategy and on the recruitment, retention and career progression of planning staff across the county.

Earlier in 2024 Devon County Council and Torbay Council submitted a bid to launch a Combined County Authority (CCA) but its future was now uncertain following the general election.

The housing commission said it wanted to see a CCA sponsoring a new Development Corporation.

The report said: "This would act as a master developer on behalf of the county, Torbay, and the district councils.

"It would acquire land, capturing its value, raise private finance, and implement a master plan for all major, strategic developments."

The commission called on the government to introduce an exemption from Stamp Duty for people claiming their pension to free up housing stock and a new planning use class for all short-term/holiday lettings.