Plymouth City Council has acknowledged it is falling short on its targets for delivering affordable homes, reporting just 96 such completions in the last year and warning that the cost of construction is making new housing unviable without significant subsidy.
Costs outstrip sale values, councillors told
At a recent scrutiny board meeting officers presented a monitoring report on the council’s corporate plan which stated that affordable housing outputs have remained largely static, while a number of sites with planning consent have not progressed to construction.
The city's cabinet member for organisational efficiency told councillors that developers were increasingly unwilling to build because the economics do not stack up locally. He set out the scale of the shortfall in blunt terms, saying the difference between building costs and sale prices was substantial.
“At the moment the reality of the situation is it is unaffordable to build a home in Plymouth, it costs more money to build a home than it actually does to sell it…you won't find anyone who wants to build a home in the city unless we as a council or somebody puts fifty grand on the table to assist.”
The remarks were made by Cllr Mark Lowry (Lab, Southway) during the meeting. Councillors also heard that of the 96 affordable dwellings recorded, 37 were for social rent.
Backlog of consented sites and comparisons with other cities
Officers disclosed there are around 4,500 homes in Plymouth with planning permission that have yet to see construction begin. Some councillors contrasted Plymouth’s delivery with larger authorities elsewhere in the country to highlight the scale of underperformance.
- Affordable completions last year: 96
- Social rented homes included: 37
- Homes with planning consent, not started: 4,500
- Estimated subsidy gap cited: £50,000 per home
Cllr Daniel Steel (Lab, Plymstock Radford) pointed to much larger outputs in other cities as evidence that Plymouth should be achieving more, while Reform UK councillor and construction professional Cllr Andrew Crumplin raised concerns about the financial realities on building sites.
What this means for renters and prospective buyers
Affordable housing in the council’s definitions is expected to be at least 20% below local market rents, with social rents typically around half market rates for those on low incomes. The shortfall in new supply is likely to add pressure on waiting lists and on private rents if demand continues to outstrip available lower-cost homes.
| Metric | Figure |
|---|---|
| Affordable homes completed (last year) | 96 |
| Of which social rent | 37 |
| Homes with consent not started | 4,500 |
| Estimated subsidy needed per home | £50,000 |
The council said it is exploring options, including bespoke arrangements with government, to improve delivery. However, councillors were warned that without financial support from the public sector or other interventions, private developers are unlikely to proceed on sites where they would make a loss.
For residents watching local housing policy, the meeting underlined two practical realities: permission alone does not guarantee homes will be built, and large funding gaps can stall schemes even when there is land and planning approval. How the council chooses to bridge that gap — through grant, cross-subsidy, land release or other measures — will determine whether Plymouth can accelerate the supply of lower‑cost homes in the coming years.
Further scrutiny is expected as the authority refines its corporate plan monitoring and brings forward proposals to tackle stalled sites and the acute affordability pressures flagged by councillors.
