Councillors on the Isles of Scilly have agreed to buy a former guest home and convert it into affordable housing to try and tackle a housing crisis on the islands.

The Council is in the process of buying the property on St Mary’s which was listed on the market for £745,000.

A report on the purchase went to the council for consideration in October but was held in confidential session, however details of the purchase were included in a report from the Cornwall and Isles of Scilly Executive Group which said that issues with housing were “magnified” on the Isles of Scilly.

The report states: “Housing is one of the areas in which the impacts of the pandemic has been most acutely felt.

“Rising house prices and the increase in domestic tourism resulted in many private sector landlords taking the decision to sell or move into holiday lets resulting in critical shortages in the private rented sector and subsequent increases in rental costs.

“Progress that had been made in balancing the housing market and access to affordable homes has been hit hard with supply and demand challenges not appreciated before the pandemic.

“Access to housing has also impacted organisations’ ability to recruit staff, limiting the opportunity to attract new skills.”

Councillor Tim Dean, lead member for housing on the Council of the Isles of Scilly, said that the purchase was just one way the council was trying to ease the housing crisis.

He explained that there are currently around 60 households on the council’s waiting list and said that the Duchy of Cornwall also has a waiting list.

“It is a massive issue, housing has always been a problem here as everybody wants to live on Scilly. But in order to get a home you need a lot of money and wages here are low, those who do have homes have either been inherited or owned by someone else.

“Much like Cornwall we have a shortage of properties in the private rental market for workers, keyworkers or anyone who lives here, they have been converted to holiday homes or sold to make the most of the market.

“This has created pressure on the council as one of the largest rental providers in the market as a huge majority of the private market has gone.”

Cllr Dean said that the council was planning to build some of its own affordable homes but said that it had decided to buy the former guest house as a short term move to help those in need.

He said: “This is an immediate solution to an immediate problem. It partly solves the problem but it is nowhere near the full solution.”

The property, which includes a four-bedroom main house and a separate two-bedroom annexe, is set to be converted by the council into three affordable units.

Cllr Dean said that it was unusual for the council to buy a property to use for affordable housing but said it was necessary.

“We have bought properties before but more often for the general fund purpose for staff, so for senior officers or the chief executive and rented at full market price. This will be rented at affordable rent rate.

“We are doing anything we can to try and help this situation and those who are on the housing waiting list.”

Cllr Dean said that the council was looking at long term solutions such as building affordable homes and said that there were plans to redevelop the old secondary school site and for 12 self-build homes in Old Town.

But he said that these were schemes which would take time to provide so the council was looking at all solutions.

He said: “This property (the guest house) will go someway towards helping but there are very few properties that come up for sale which are affordable.”

The council is also working with the Duchy of Cornwall to try and see if there are any other sites which could be suitable for affordable housing developments.