Managing temporary accommodation: the options

Samantha Grix sets out some potential solutions for the increased need for temporary accommodation.

Temporary accommodation is an essential safety net for individuals and families facing homelessness, and as such it is a key responsibility for local authorities (LAs). However, managing this provision effectively presents ongoing challenges due to rising demand, limited availability and financial pressures on LAs.

In recent years, the need for temporary accommodation has surged. Economic instability, the housing crisis and welfare reforms have all played a role in pushing more people into homelessness. The shortage of affordable housing has exacerbated the issue, leaving local authorities across the country struggling to place those in urgent need.

Families with children, those fleeing domestic abuse and people with complex needs require immediate and appropriate housing. Yet, the limited supply of available social housing has meant councils are increasingly reliant on private sector accommodation, whether this be nightly paid or longer term lettings. This reliance comes at a high cost, both financially and socially. Recent figures show that one in 21 children in London now live in temporary accommodation, highlighting the scale of the crisis.

So, what is being done to address this?

Innovative solutions

A promising development looking to address the crisis quickly and efficiently is Project 123, which is a G15 initiative. Project 123 is exploring the use of modular housing on what would otherwise be vacant land owned by local authorities or Registered Providers as a “meanwhile use”. The project presents a framework under which modular units would be leased to the landowner on a short to medium term basis for use as temporary accommodation, while awaiting long-term decisions to be made as to the redevelopment of the land or funding to become available. These modular units, while not commonly used yet, have come a long way in recent years and each unit could provide suitable housing for a family waiting to be permanently rehoused. The benefit of this type of housing is that it is quick to deliver, can be moved to alternative sites as they have such a long lifespan, will give LAs some control back of where they place people, and hopefully assist with reducing the TA budget.

So, what are the barriers to provision of this model? Unfortunately, there are a few! The current planning process can be slow, local residents often don’t want this in their back yard, so objections are common, there are often issues relating to procurement and rent regulation which need to be worked through and bringing this to fruition takes focus and commitment which LAs struggle to do because of the barrage of competing emergencies.

I am confident that the playbook that Project 123 is working on will make commitment to this model easier as they will have done the legwork for everyone. So, what we need to think about for now is where the land is and go from there.

Financial viability

A major stumbling block for local authorities is the model which underpins temporary accommodation. LAs are querying and often reluctant to be the landlord in models such as the above, due to the financial restraints they operate within. By this, I mean the limit of 2011 Local Housing Allowance rates which means that LAs lose money when they let TA directly. This obviously impacts the financial viability of the scheme. It seems obvious that this cap needs to be reviewed to unlock LAs ability to deliver more TA directly or we need to find more innovative ways for land to be used in this context.  

What else?

Existing empty stock also presents an opportunity. Many RPs hold properties that are currently unfit for use or will be too costly to bring up to an appropriate energy efficiency standard due to refurbishment costs, so they are selling off this stock on the open market

If we go back to the 2010s, lease and repair schemes allowed RPs to bring such properties back into use, then let them out at affordable rent rates. A modernised version of this approach, supported by government grants, could significantly expand the available housing stock for temporary accommodation. This would be a good news story as it would not only provide TA for people in need, but would  secure retention of stock in the social housing sector and could be used as permanent housing in the long run.

Longer term solutions

There was, recently, a brilliant project led by Riverside housing in Sefton, where there was a pocket of available properties. Riverside arranged a scheme with the LA, where the LA could place people in need of temporary housing into these properties with housing related support. This was very much TA in the first instance, but upon successful completion of probationary periods, the occupants were allowed to stay in the properties permanently which avoided them being uprooted.

The benefits of this project cannot be underestimated given the stability it provided to the tenants and their families. Of course, very rarely are there numerous properties in one area available, and it takes innovation and motivation to push a project like this forward. However, there is a question of whether the properties need to be in close proximity of each other or if this could work on an ad hoc basis when properties become available. For this to be a realistic option across the country, permanent housing waiting lists will need to be reduced to free up family homes for those needing temporary accommodation for stay put to be an option. 

To find long lasting solutions to this crisis, we need innovative ideas, collaboration and investment. Initiatives like the Temporary Accommodation Network (TAN) is a growing network of individuals from across the sector with an interest and expertise in tackling the housing crisis. To date TAN has formulated and submitted key asks to tackle the TA crisis to the spending review, and shared ideas and contacts, delivery models and insights. It is people that are ultimately going to work out the answers, and TAN is a positive step forward in this campaign.   

Samantha Grix is a Partner at Devonshires.