How the temporary accommodation crisis is biting

A significant 53% of respondents said the Right to Buy (RTB) scheme – which was introduced in the 1980s to enable eligible council tenants in England to buy their home at a discounted rate – had “considerably” reduced stock and therefore increased the pressure on temporary accommodation.

One respondent said the crisis was “a direct cause of RTB, leading to the reduction of the social housing sector, coupled with the severe cuts in housing budgets, especially in homelessness”.

Another respondent said they had lost over 5,000 social rented units in their borough, with most of these being family homes. Another said it was “a good policy in practice if governments had replaced housing stock”.

One respondent said: “The RTB legislation, in combination with successive governments’ obsession with low-cost homeownership products rather than low-cost rent, has created this crisis over the course of the last 40 years. We now have over 7,200 households on our waiting lists, and nearly 50 families in long-term B&B accommodation because of a lack of available social rented homes in the borough.”

The survey results come as the Local Government Association called for a revamp of the Right to Buy. The organisation said that for the last financial year, 10,896 homes were sold through the Right to Buy in England, while only 3,447 were replaced. This resulted in a net loss of 7,449 social homes in 2022-23 alone.

Asked what their top concern was in regard to responding to temporary accommodation in the next 12 months, more than half chose “the availability of stock”. “How to fund it” was selected by 24%.

On the sector’s concerns around funding, Alex Bodie, director of community housing and healthcare at Together, said having the right lender was key to helping social housing providers deliver more homes.

“This data shows there is clearly a problem, but what’s most worrying is the fact that this crisis is going to get significantly worse,” he says. “There are numerous reasons why this is happening, but there is a clear need for a long-term solution, not short-term fixes, which ultimately only add to the problem. As a lender, we can play our part in this solution by providing much-needed funding to landlords and local authorities, supported by a clear understanding of the sector and its issues.”

Funding cuts

Further comments from respondents painted a stark picture. “Our funding has been cut to the quick. Every department is struggling,” said one. Another added: “We have no money. We have a budget deficit of nearly [£2m] at a time where we need to spend huge sums on temporary accommodation. The sums don’t add up and I have no idea what we will do.”

Others offered insight into the challenges facing their boroughs. “I believe the cost of unsupported temporary accommodation is excessive and is causing considerable strain on the local government’s finances,” began one.

Another said: “Since the pandemic, the use of B&Bs has increased, plus the government’s ‘leave to remain’  policy, where people granted leave to remain have to leave [asylum seeker accommodation] within seven days instead of 28 days, doesn’t allow people to get their benefits in place before they become homeless, adding extra strain on already stretched homeless services.”

One called on the sector to develop a clearer strategy around dealing with temporary accommodation, while being open to “innovation and partnerships”.

Northern Ireland has also seen a huge increase in people in temporary accommodation, rising 104% in four years, to 4,200 households by July 2023, the last period for which data is available. One respondent in Northern Ireland said cuts to Supporting People funding, which is spent on supported housing projects, are exacerbating things and adding to the pressure.

“There are limited offers for those in hostel and temporary accommodation, which is basically ‘bed blocking’, which is increasing pressure to accommodate people into non-standard [accommodation], such as B&B and hotel accommodation.”

Summing up the issue, one respondent said: “Two-thirds of the temporary accommodation stock [in our borough] is due to be demolished for development. This comes at a time when there is increasing demand for emergency and temporary accommodation. Emergency accommodation providers that have worked with the council for 20-plus years are moving out of the market.

“There is increased pressure from no-fault evictions, the PRS is contracting and the available properties are unaffordable for many. [There is also an] inadequate supply of affordable housing to [home] people moving on from temporary accommodation, and limited options for large families and adapted properties.”