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The urgent need for sustainable housing solutions

The temporary accommodation crisis requires drastic action, writes Josie Parsons, chief executive of Local Space

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The temporary accommodation crisis requires drastic action, writes Josie Parsons, chief executive of Local Space #UKhousing

As the chief executive of one of the primary providers and managers of temporary accommodation in east London, I have witnessed first-hand the mounting pressures faced by local authorities, particularly the London Borough of Newham, in managing the increasing demand for housing, including temporary housing.

The current crisis is not just a challenge for councils, but a societal issue that requires urgent and collective action.

The recent financial review from Newham Council, highlighting a deficit of over £22m largely due to the rising costs of temporary accommodation, serves as a stark reminder of the scale of the problem.


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This situation is further underscored by the latest statistics published by the Ministry of Housing, Communities and Local Government. As of 31 March, 117,450 households were in temporary accommodation across England, an alarming increase of 12.3% from the previous year.

Particularly concerning is the 14.7% rise in households with children, now totalling 74,530, and an 8.5% increase in single households, reaching 42,920. Even within just the first quarter of 2024, the number of households in temporary accommodation grew by 4.3%.

These figures are a clear indication of a worsening crisis that demands immediate attention.

“In the NHS alone, homelessness and poor housing contribute to delayed discharge, exacerbate underlying health conditions and place enormous pressure on primary care services”

The impact of homelessness extends far beyond just housing; it has profound social and economic consequences. A recent report by University College London quantified the direct cost of homelessness to the state at approximately £6.7bn per year, a huge figure.

In the NHS alone, homelessness and poor housing contribute to delayed discharge, exacerbate underlying health conditions and place enormous pressure on primary care services. These issues have a ripple effect across education, social services and, ultimately, our future economy.

The housing crisis is not just making people ill; it is driving families into financial hardship, proving expensive for taxpayers and holding back economic growth.

At Local Space, we are committed to supporting local authorities by providing high-quality housing solutions. We currently lease 1,448 homes, utilised as temporary accommodation. These homes are of higher quality than much of the alternative private sector housing and are affordable within the benefits system, helping to moderate some of the costs associated with temporary accommodation.

In addition to temporary accommodation, we offer around 1,200 settled homes, allowing councils to discharge their duty and house people in good-quality homes at Local Housing Allowance rates. These homes are vital in offering families stability and security while being affordable within the benefits system.

We also lease approximately 200 homes on a short-term basis, enabling councils to discharge duty into high-quality homes within the borough.

“The real long-term solution lies in the development of more homes of all tenures. There is an urgent need for social homes and genuinely affordable rent to address the housing crisis effectively”

Furthermore, Local Space provides around 150 key-worker homes at sub-market rent, supporting those who are essential to our communities, but who are often priced out of the housing market.

However, while these efforts provide some relief, they are not nearly enough to address the underlying issue; the scale of the problem is vast and cannot be solved by individual organisations alone. The real long-term solution lies in the development of more homes of all tenures. There is an urgent need for social homes and genuinely affordable rent to address the housing crisis effectively.

It is clear that local authorities are doing everything within their power to manage the crisis, but they cannot do it alone. The government must step in with a comprehensive strategy that addresses the root causes of the housing shortage. This includes not only providing more funding, but also ensuring that the distribution of resources is fair and targeted where it is needed most.

At Local Space, we will continue to work collaboratively with the London Borough of Newham and our other stakeholders to develop sustainable housing solutions. The future of our communities depends on it, and we are committed to being part of the solution.

Josie Parsons, chief executive, Local Space

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