Wylfa Newydd homeless fears as rents set to soar
ISLAND council chiefs expect a rise in homelessness if rents skyrocket as landlords try to cash in on the Wylfa construction jobs goldrush.
Horizon Nuclear Power is hoping to build a £12 billion reactor at Cemaes, near the former Magnox plant at Wylfa.
If the company gains the necessary licenses and secures the funding, the first workers are expected on site as early as 2020.
But a report presented to its executive has revealed that Anglesey council officers expect homelessness to rise as a result of increased demand – especially in the private sector.
In a bid to protect its social housing stock, the authority has already scrapped “right to buy”, also endeavouring to increase the number of council houses by 500 over the next 30 years, in addition to the 3,800 it owns and manages.
However, officers are fearful of the impact on the private rental sector where there are fewer controls over what landlords can demand in rent.
Arwel Jones, of the island’s housing services department, said: “We do have Wylfa in the back of our minds because there’s a possibility of an increase in homelessness, especially in the private sector where landlords may perhaps decide they can maximise the rent at the expense of people they already have as tenants.
“This has already been a factor in some areas of England, where rent has increased three-fold as compared to the market rent which is very concerning from a homelessness point of view.
“I think there’s a high risk to us as an island. Yes of course there are high financial benefits from Wylfa, but this is the other side of the coin.”
The plant, which has yet to gain a Development Consent Order (DCO), would be expected to create around 850 jobs when up and running, with the majority hailing from the local area.
Employment at peak construction would be around 8,500 for approximately 12 months, with around 4,000 working on site at any given time, but Horizon expect that only 2,000 of these will be local –meaning that accommodation will be needed.
Responding to the council’s findings, Wendy Hughes, the CEO of Anglesey-based homeless charity Digartref Cyf said: “It’s already difficult to secure accommodation for those in housing need, including the homeless.
“Due to welfare reforms, ability to access the private rented sector is becoming increasingly difficult.
“If you require housing benefit to assist you in meeting your rent charges, as a single person under 35 you will only get the local housing allowance level which is £58 per week from housing benefit, you have to find the shortfall yourself.
“One effect on demand for accommodation is that rents will rise.
“With thousands of contractors looking for accommodation, landlords will be in a position to demand and get more.”
She added: “There’s also likely to be a reduced number of B&B places for homeless people as contractors fill these vacancies.
“Social housing is already stretched, with many more people on the waiting list for council or housing association accommodation than the number of properties available.
“As a charity we are looking at ways now for migrating any effects on those at risk of homelessness, planning for the possible effects of Wylfa B, this includes the development of a homelessness hub on Ynys Môn to include temporary emergency accommodation for rough sleepers.”
A spokesman for the council said: “The planning process for Wylfa Newydd will consider all potential opportunities and impacts associated with the proposed development.
“The impact of construction workers on the local housing market, availability, and affordability will be fully evaluated.
“Any adverse impacts will need to be managed, or effectively mitigated. The planning process will determine what will constitute effective and appropriate mitigation.
“The county council is collaborating with Horizon and other stakeholders to quantify likely impacts and locations. This will inform the devel- opment of an appropriate housing mitigation fund.
“It should also be noted that the council works closely with key partners such as housing associations and private landlords in order to deal with the matter in question.”
A Horizon spokesman added: “Horizon has considered the potential increased demand for housing stock during the 12-18 month construction phase of Wylfa Newydd. We anticipate a maximum of 9,000 workers during this phase and our calculations indicate around 2,000 will already be living locally, with a further 4,000 being housed in bespoke workers accommodation at site.
“This temporary building will be designed for single people with facilities specifically aimed at reducing demand on local services, for example an in-house GP service and sporting activities, and will be removed once construction is complete.
“Our research indicates that of the remaining 2,500 people around 600 will bring touring caravans, while others will choose to buy or rent private property. The current estimates of available accommodation show that there is sufficient capacity in the available market to cope with this extra demand.
“This will be managed through an accommodation management service to make sure all registered properties meet the required standards as well as ensuring current tenants aren’t displaced.
“Horizon is also committed to providing a flexible Housing Fund that could be used both to boost the supply of housing (including affordable housing and bringing empty homes back into use) and fund measures that help prevent and deal with homelessness. This will be secured through the planning application process for Wylfa Newydd.”