London Daily

Focus on the big picture.
Sunday, Feb 05, 2023

Councils paying millions more for temporary accommodation in social housing shortage

Councils paying millions more for temporary accommodation in social housing shortage

The latest government figures show the number of families with children living in temporary accommodation in England, outside London, has risen by more than 20%.

An extra £118m, at least, will be spent this year on temporary accommodation, such as hotels and B&Bs, by councils, a Sky News investigation has found.

If trends continue, local authorities in England will spend nearly a quarter more (24%) this financial year than pre-COVID-19.

Outside London, expenditure is on track to increase by 55%.

The number of families living in temporary accommodation (TA), as a proportion of the population, has also risen by 8%.

Around £309m was spent by councils on TA in the six months to September, and they are expected to spend well over £618m this financial year.

That's compared with £500m in the year to March 2020.

The true figure will be much higher because out of more than 300 local authorities contacted, through freedom of information requests, only 180 responded with comparable data.

The biggest increases in TA spending since before the pandemic have been in Yorkshire and the Humber and the South West.

The biggest rises have been in St Helens, Rossendale, Torridge, Sunderland and Wigan.

Torridge district council, in Devon, one of the worst affected, has a forecast for TA expenditure of £1.1m this year, an increase of more than 2,000%.

Devon is a case study in itself, bearing the brunt of external housing market pressures.

There are 70% fewer properties available to rent there than in 2018 and the cost of rented accommodation has also risen by 42%.

It is also believed that in Torridge, a "tourist hotspot", a "significant number" of properties are being let as holiday homes.

Torridge district councillor Rachel Clarke, lead for homelessness and housing need, told of "unprecedented pressures" with "modest reimbursement" from the government.

"The council is facing significant challenges in finding affordable rented accommodation for residents in temporary accommodation, and hence their stays in TA are longer," Ms Clarke said.

"The cost pressures associated with temporary accommodation is by far the biggest cost pressure this council faces."


Sally O'Malley and her son Ollie were evicted from their privately rented home

More children in temporary accommodation


The latest government figures also show that the number of families with children living in TA in England, outside London, has risen by more than 20%.

Sally O'Malley and her son Ollie, 12, are one of those statistics.

They lived in a hotel, followed by a B&B, after she was made homeless through a "no fault" section 21 eviction.

She was told, like many are, that she would not be eligible for help from the authorities until the day she became homeless.

Ms O'Malley, 49, who is from Leeds, was evicted from her privately rented house and describes the ordeal as "traumatising" and "hell":

"I wouldn't wish it on my worst enemy… horrible. We got to the stage where I really wanted to give in," she said.

"Then I'd beat myself up cos how could I think that with Ollie? I had no fight left. I didn't want to do one more phone call, one more email. I totally lost myself, I was drowning."

She is now in rented accommodation paid for through her housing allowance but, as it doesn't cover the cost of rent, is topped up by the local council.

She is one of thousands going through a cycle of eviction, homelessness, temporary accommodation and then back into an expensive private rental sector.

The councils that responded to information requests have spent £1.98bn on temporary accommodation in the past three and a half years.

Sean Gillespie, a landlord in Hull, says a 'massive housing crisis' is on the way


Rising rental costs and falling supply


The reasons behind the rise in costs is partly down to more homelessness in some areas, but also due to the rising cost of accommodation itself.

The supply of privately rented accommodation is dropping, which is partly pushing up prices.

Some councils are also struggling to find places to put people up in, which means they are having to resort to more expensive shorter-term lets.

Sean Gillespie has a portfolio of properties to rent in Hull and blames government legislation for a lack of stock as it forces landlords to sell up.

He claims the most damaging piece of legislation has been "section 24", which came fully into force last year and means landlords are no longer able to offset financial costs against tax.

"Can you imagine a business, any business, where you can't offset your costs? How is that possible? It's now possible to make a loss as a landlord and still pay tax - it's bonkers," he said.

"We are not taxed on our profits, we're taxed at our turnover. Where is the spare money?… We [landlords] don't want a new Rolex, we just don't want to sell someone's house.

"Because that doesn't help anyone. I really don't know where people are going to live. There's going to be a housing crisis. It's in the post, a massive crisis, it's catastrophic."

Alex Diner, senior researcher of housing policy at the New Economics Foundation, describes temporary accommodation as a "national scandal".

"We are throwing far more money at the symptom of the problem and far less on addressing the root cause of it," he said.

"It's economically illiterate and dysfunctional that we're allowing ever-increasing amounts of money to pay for that, rather than dealing with the problem at source and building social and affordable housing that the country so desperately needs."

Lack of social housing the key problem


At the heart of all this is one uniting factor: a distinct lack of social housing.

Think of the housing market as a vicious circle of inequality, with two things happening at the bottom.

One: unaffordable housing has driven more and more people on low incomes into the private rented sector.

Two: social housing stock has been sold off and not replaced and therefore benefit recipients have also been forced increasingly to privately rent.

The fact is the private rental sector has become a substitute for social housing.

In the middle of it, two converging groups of people have begun to compete for the same place to live.

Government figures show 25.7% of households in the private rental sector are in receipt of housing benefit.

If we built more affordable homes, and specifically more social housing, it would slowly take the heat out of the private rented sector and ultimately market sales.

Private rental has become a precarious and increasingly unaffordable sector and is one of the main reasons why taxpayers are spending billions on temporary accommodation.

From an economic perspective it may appear nonsensical, certainly in terms of "levelling up".

Ultimately, an overreliance on the private rented sector, as more landlords sell up, will only serve to deepen social and housing inequality.

A government spokesperson said: "Temporary accommodation is a last resort, but a vital lifeline for those at risk of sleeping rough.

"We are giving councils £316 million this year to prevent homelessness and help ensure families are not left without a roof over their heads.

"We know people are concerned about rising costs, which is why we have announced the energy price guarantee, to support household with their energy bills over the winter, and a further £37 billion of support for those struggling with the cost of living."

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Tennessee Bill Would Imprison People for 3 Years If They 'Lie' About Rape to Get an Abortion.
You Are So Beautiful
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
Postmodern Jukebox European Tour Version
Shell reports highest profits in 115 years
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
EU found a way to use frozen Russian funds
Sattahip Motor Show 20
First generation unopened iPhone set to fetch more than $50,000 at auction.
SONATE AU CLAIR DE LUNE - Moonlight sonata
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
A kiss to build a dream on
Almost 30% of professionals say they've tried ChatGPT at work
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
What is ChatGPT?
Mean Blues
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
La Chansonnette
China is opening up for foreign investors.
Pattaya Addicts
Tesla reported record profits and record revenues for 2022
Franz Liszt - Liebestraum - Love Dream
Germany confirms it will provide Ukraine with Leopard 2 tanks
Dream a little dream of me
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Unchained Melody sung like you've NEVER heard!
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Dave Brubeck - Take Five
Who’s Threatening Israeli Democracy?
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Federal Reserve Probes Goldman’s Consumer Business
Rondo Alla Turca
China's first population drop in six decades
Kiss of fire
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
Israelis rally in three cities against Netanyahu legal reforms
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Israel Cachao López - Guajira Clásica
Tesla slashes prices globally by as much as 20 percent
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Japan prosecutors indict man for ex-PM Shinzo Abe murder
Strauss - Radetzky March - Karajan
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
La vie en rose
After Failing To Pay Office Rent, Twitter May Sell User Names
Despacito (Piano Cover) - Peter Bence
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
FIFA president questioned by prosecutors
Orlando Cachaito Lopez Redencion
Britain's Sunak breaks silence and admits using private healthcare
Edith Piaf - NON, JE NE REGRETTE RIEN
Dirty bomb fears as URANIUM is found in cargo at Heathrow
RADETZKY MARCH-2008-Wien, New Year Concert
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Only you (And you alone)
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
Strangers In The Night
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Charles Aznavour - La Boheme
TikTok CEO Plans to Meet European Union Regulators
Summer time
UK chaos: Hong Kong emigrants duped by false prospectus
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Aux Champs Elysees
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
La Mer (Beyond the Sea) – Avalon Jazz Band
Will Canada ever become a real democracy?
She
Hong Kong property brokerages slash payrolls in choppy market
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Radiohead - Creep
Coinbase to Pay $100 Million in Settlement With New York Regulator
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
FTX assets worth $3.5bn held by Bahamas securities regulator
Perhaps, Perhaps, Perhaps - Multi-Couples
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Pentatonix Havana
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Paula Cole - Autumn Leaves
Hong Kong to scrap almost all its Covid rules
Oscar Benton Bensonhurst Blues
EU calls screening of travellers from China unjustified
OH NANANA vs ABUSADAMENTE
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×