Action is needed to tackle Devon’s “housing emergency”, new report warns

Devon is “running out of housing options” and urgent action is needed to tackle the dramatic numbers of families priced out of markets having to be placed in temporary accommodation, a new report warns.

Members of the Devon Housing Commission say the housing crisis in Devon is having consequences for public services and the economy; and creating extra challenges for hard-pressed care and health services.

They have called for central and local government, with social housing partners, to redouble efforts to provide more truly affordable homes for the people of Devon.

In order to get more homes in the right places there needs to be better resourcing of planning departments, special measures for rural and coastal communities and a county-wide Development Corporation for major developments.

The report also recommends homebuyers over pension age should get an exemption from Stamp Duty. This could also help solve issues in the county by helping older people find a “right-sized” property.

The Government should also introduce a new planning use class for all short-term/holiday lettings and local authorities should be able to limit them in areas where growth is proving detrimental to the community.

The Housing Commission – which has been established by the Devon Housing Task Force, is a partnership between the ten local authorities across Devon, including Torbay and the County Council – and is supported by the University of Exeter.

Their report calls for the Government to press ahead with the registration of short-term lettings and for district councils in Devon and Torbay Council to take advantage of the new opportunity to double Council Tax on second homes. This extra Council Tax could help the funding needed to address housing challenges.

The report outlines how the housing emergency in Devon is caused by high house and rental prices and lower incomes in Devon. House prices are inflated by those moving from more expensive areas. Middle-aged and older people are moving in while younger people are leaving. This leads to employers having difficulties filling vacancies and key workers being unable to afford to live near their place of work.  

Lord Richard Best, Chair 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. 

“This is best illustrated by the 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. This represents a real emergency.” 

Commissioners found 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. 

But the report says “significant inroads” could be made in easing shortages and delivering affordable homes at the scale required.  

The report calls for a new Devon-wide Housing Strategy that sets out goals and a roadmap to achieve them over the next decade and beyond. There should be a successor body to the current Devon Housing Task Force comprising representatives of Devon’s local authorities to monitor progress and work with the proposed Devon and Torbay Combined County Authority (CCA). This new authority should sponsor a new Development Corporation to act as a Master Developer to acquire land and raise private finance, reducing reliance upon housebuilders.

Other recommendations include:

• Councils should make maximum use of the Rural Exception Sites model and demonstrate flexibility in enabling village schemes for local people, including by sometimes permitting a small minority of homes to be sold in return for a very modest land cost for the affordable housing.
• Government should permit the imposition of a stricter timetable for action where planning consent is granted but development has stalled.
• Local authorities should be given greater discretion to call in any significant development using permitted rights to avoid inferior standards, to impose stronger prior approval requirements, and to allow the levying of developer contributions.
• The Government should introduce the measures to improve the private rented sector contained in the earlier Renters (Reform) Bill including ending “no-fault” evictions and creating a landlords’ ombudsman.