The Council has completed the purchase of the Royal building on St Andrews Cross.
The building, which until recently was a student accommodation block, will be converted to use as temporary accommodation for homeless families.
Although currently home to a number of self-contained student apartments, each with common living areas, the plan is to convert it into 30 one, two and three bedrooms flats suitable for families who are in need of temporary accommodation. In addition, an office space for the Council’s housing team will be created.
The purchase of the building is part of the Council's ongoing strategy to tackle the housing crisis while improving the process for families who find themselves homeless and reducing the reliance on the local hospitality sector for temporary accommodation.
Councillor Chris Penberthy, Cabinet member for Housing, Communities and Cooperative Development, said: "I am so pleased that we are finally able to complete on this important piece of business.
"I have not been shy about shining the light on the housing crisis here in Plymouth but I know that the purchase of the Royal will make a real difference to the lives of people experiencing the darkest days of their lives.
"I can't wait to get started on our refurbishment of the building and get it up and running."
Councillor Mark Lowry, Cabinet Member for Finance, added: “This is a really important day for so many families experiencing homelessness in our city, some of whom will not now need to live in bed and breakfast accommodation when they come to us for help.
“Homelessness is a massive issue in Plymouth and we must all redouble our efforts to provide more homes across our city.
“But of course the financial benefits for the Council are massive and over time, the purchase of the Royal will free up budgets to help tackle issues around homelessness in the round.”
Plymouth, like many other towns and cities across the UK, is facing a homelessness crisis brought about by a combination of factors such as the cost of living and other economic issues.
These have significantly affected the housing market and people's ability to meet day to day bills like rent, mortgage payments, utilities, food and travel.
In addition to this, a declining private rented sector, with landlords selling up or increasing rents to meet their own rising costs, means there are fewer homes available.
As a result, there’s been a massive increase – 158 per cent – in demand for temporary and short-term accommodation, with families staying longer in temporary accommodation as there are fewer permanent homes to move into.
The purchase of The Royal building cost £5 million, funded from the monies set aside by Cabinet in December to tackle ongoing temporary accommodation budget pressures.
A planning application for change of use will be submitted early next year.