The number of homeless people in a town has increased five-fold in just two years, according to the council leader.

Hastings Borough Council could be bankrupt by March next year due to soaring costs because of its growing homelessness problem.

The number of homeless people has gone from 170 people two years ago to more than 1,000 according to council leader Paul Barnett.

It comes as a scathing report revealed that “unless urgent action” is taken, all of the council’s funds could be used up in seven months.

The Argus: Hastings Borough Council could have used all of its general reserve fund by March next yearHastings Borough Council could have used all of its general reserve fund by March next year

Councillor Barnett said: “It has gone from 170 people needing temporary accommodation two years ago. Now it is over 1,000 people here. It is a shock.

"We have more than 1,000 homeless people in a town of 90,000. That's a massive percentage.

"We have to find homes for them in Hastings. At the moment we can't find them homes so they often end up anywhere in Kent or Sussex. That's a disaster for them and a disaster for us.

"We are buying homes in Hastings at the moment to keep people near their support networks to get them back on their feet and find long-term, secure accommodation.

"But we need to go faster and we need government help to do that.

“This is a national issue that needs support from the government. It’s a massive local issue too due to the massive rental market in Hastings.

“It’s not other councils sending people to us, this is the cost of living crisis playing out in front of us. People can’t afford their homes. It doesn’t take much in terms of people losing a bit of their income and not being able to afford their rent.

“Because landlords are still allowed to throw you out because of no fault evictions, they will. We’re seeing that in front of our eyes.

The Argus: Councillor Paul Barnett is calling for people in Hastings to offer spare rooms to let outCouncillor Paul Barnett is calling for people in Hastings to offer spare rooms to let out (Image: Hastings Borough Council)

“We are doing loads of things to try and resolve that. I have put a call out to people in the town to help us. The council can’t resolve this on its own.

“In the meantime, we want people with spare rooms in their homes to think about working with us to let those out. We want landlords to partner with us to come up with a fairer way to provide accommodation.

“We’re confident we can turn this around if the whole town gets behind it. We did it with Covid and we can do it with housing, but it won’t be easy.”

The council is looking to sell four pieces of land to raise £3 million pounds to restore its general reserve fund to normal levels.

As of March this year, the council had £4.8 million in its reserve, £1.1 million below its agreed minimum of £6 million.

The council has agreed 13 recommendations from the Local Government Authority which include making financial sustainability the priority and a comprehensive review of all service budgets.