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  • Section 24 HQ

    Cost of temporary accommodation on the rise



    The cost of putting homeless people into hotels, B&Bs and other temporary accommodation has risen by £20 million in three years and totalling £110m in the last financial year, according to FOI figures.

    Much of the accommodation was for single people but there were also a staggering 7,502 families with children being put in temporary accommodation in the last financial year – almost double the number in 2015-16, of 4,002.

    The amount that councils spend per night ranges from up to £506 in Thurrock, to less than £15 in the London Borough of Sutton.

    There is no inspection process to ensure hotels meet the same standards as social housing and some of the hotels which were listed in the data from the FOI requests had appalling reviewer ratings.

    One hotel in Nottingham was described as "terrible in every aspect," on TripAdvisor. "It makes faulty towers look like luxury," said a customer.

    Full/source story

    So, the Government is deterring landlords by onerous tax changes, so now there will be limited options for local authorities to discharge their housing obligations into the private rented sector.  This means that, due to lack of social housing, more people will be forced into temporary accommodation at far greater expense to the tax payer!

    It really is quite farcical.

    Just another reason why Section 24 is so damaging to this country's housing market and will have to be reversed.

    SEE ALSO  -         Number of private landlords in decline

    UP NEXT -            What causes homelessness in the UK?

    DON'T MISS -        1 in 4 landlords to exit due to Section 24

    NOW WATCH: 

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    Who is surprised at this?  It was obvious that Section 24 would deter landlords and restrict private rental stock - so bills for temp accom are only going to increase going forwards and cost tax payer far more than putting a tenant in a private landlord's property!

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    I would love to know how London Borough of Sutton is managaing to home people for less than £15 per night.  That seems low.

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    The situ is a total & utter piss Take of magnanimous proportions

    Oxford City Council - jus purchased a EX council house for £325k that was sold in 1988 under Right to buy scheme for prob around £50-60k, they now propose to spend £40k to update it and then house 1 family off its 3000 plus households on its current homeless waiting list ( growing by 100 per month ) - this family will get the opportunity to but the house under Right to Buy, doing so for prob £300k and the whole scenario will start all over again !

    So spend £325k + £40k to rehouse 1 family - and then wonder what the xxxx to do when u dont gave any social housing cause u sold it all off , no land to build new social housing and a infinitely growing homeless waiting list exacerbated by section 24 problems for landlords that haven't even taken maximum effect yet !!

    The council have jus approved another £5 mill for purchasing housing as above to house households off homeless list - at a investment of £350k per house - that's 14 families rehoused out of 3000 plus with 25 households added to this list weekly.

    The right to buy scheme was the causation of why we are where we are today with homelessness- I know people who bought there council house and after remortgaing that, now own 5 plus BTL and live off that income, retired and laughing in detached houses in affluent areas of Oxford !!

    With a 50% level of affordable housing on any new build and £126 per sqm CIL charge applicable- every small / medium / large builder has left oxford and gone to other towns / cities that welcome them with lower charges & % affordable housing and easier PP obtainable - thus the situ imho is far from resovable in the private sector let alone even making a slight dent in the homeless figures.

    I despair for the future and no wonder we have large vacancies for public sector jobs cause no one can afford the rents against their take home pay, the young we rely on to fund our state pensions in the future cant even fund themselves for a basic standard of living with the situ getting worse month on month, we all in this society need to stand back and look around us and think what world we are leaving for our grandchildren etc - i am and its jus so sad.

    Lord have mercy and grace to change things for the better


    Maz

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    Excellent post Maz!

    It may explain why 'Cardiff has not placed any homeless single people or families in B&Bs since June 2006'. Both Right to Buy and Right to Acquire have been abolished in Wales as I believe they have in Scotland.

    I'm not claiming that Wales and Scotland have solved these issues, but their approach appears more consistent than England.

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    That said - UK still has around 4.3 million social homes - though after 40 yrs of needs based tenancy allocation 75% are HB claimants - who will be there for life.

    Last yr the sector added around 30,000 social homes - mainly via HAs.

    In 2013 law changed allowing LAs to discharge their homelessness obligation in to PRS - subject to 12 month AST with rent within LHA cap.

    Yes there are some 1.2 million households on LA Housing waiting lists - but if you check your local CBL site you will see that many wait many yrs before being allocated a home - in Kingston I have seen waits of 15 yrs!

    As for RTB by new tenants

    1 - You have to be pretty destitute to be accepted as homeless

    2 - It now needs 5 yrs as a social tenant to be eligible for RTB

    3 - If you use RTB - the full discount is only FULLY EARNED over a 5 yr period post purchase (20% for each completed 12 months as owner) - so sale within first yr would need to fully repay all the discount and be on net loss via entry/exit costs.

    4 - Outside London max monetary RTB discount is now around £78000 - so in say Oxford they buyer needs to spend over £200,000 - and to borrow that needs earnings of £45000 pa to £50000 pa - hence a new tenant would need to go from rags to riches in the 5 yr eligibility period.

    5 - In KT9 Chessington I saw an ex-LA 4 bed terrace on Rightmove @£535000 yesterday - so a new tenant in similar would get max RTB discount £104k - and need to find £431k as the discounted sale price. Stamp Duty alone is over £14000 on such a purchase.

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    I think what is needed is government funded hostel blocks for the homeless/those in need of housing. Essentially made up of small basic rooms & small studio rooms. Plus dormitories for those that are single. The small rooms/studio rooms could house the families. I just think there is little hope of building enough single houses or flats now to house everyone like we used to do.


    That and I think there needs to be a break on the way society has been continuing in this country. In Eastern Europe - Russia, Ukraine, Belarus, etc if a woman gets pregnant and ends up a single mother that entails much hardship - far worser than here. Benefits are meagre out there for all and literally not enough to live on. They essentially have to rely on family, work very long hours or suffer. Guess what? They are a lot more carefull with who get with and having children. Out there its what guy can provide rather than whether he's a social animal.


    Here we are still subsidizing the highly social by giving them a whole house for pretty much a lifetime just for knocking out a few kids. Some take liberties and knock out 5,6,7,8 kids, moreso than some might think and not just confined to the odd bad family these days either. Result is we are suffering an over population, under housing crises. While I think we should avoid the meagre benefits of Eastern Europe I think we need to set the sights of those who can't afford their own house lower than providing a house/flat for them and government funded hostel buildings for the homeless/those in need of housing would do that. I think seeing what little they would get would Instill in people a better attitude than we see at present on council/housing association estates. I think it's becoming too big a burden to provide a whole house for families that contribute little towards the cost of building that house. Otherwise I fear the numbers of people that are homeless or living in caravans etc will just continue to rise and I do truely believe that no one should be without a home altogether, that is just too harsh a penalty.

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    Totally agree with your suggestions - though there would be an outcry around bringing back work houses to modern Britain.

    Your suggestion would help LAs cap their costs for the truly street homeless - and those to whom they do owe a housing duty 

    The charge would need to be within the relevant LHA rate for the household/location.

    The management of expectations is also a good point - as there is still a pretty widespread expectation that the Council has to house everybody who is needy - despite the 2013 law change allowing LAs to bounce people in to PRS (within LHA cap).

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    Well it wouldn't actually be 'Workhouses' as in the old Victorian sense although I can see that that would be the outcry. No work would be asked for within the state hostels it would just more accurately reflect the accomodation provision compared to effort made. I'm not saying that all those in such accomodation were unwilling to make an effort some just are unable, fall on hard times, bad luck or are in during a time of high unemployment. I also think that though the rooms would be small on space the rooms and the place as a whole should be in decent maintenance and manned by staff. So to avoid a doss hole image and too bad a reputation & living standards. I think the success of such a way of housing those in this type of social housing would be for it to be decent but not too desirable housing so as to dissuade those seeking to make social welfare a way of life rather than a safety net. In all though I think it could cut housing costs for the LHA and goverment social security costs while keeping more homeless off the streets. Good to see you think it could be a goer too Smile

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    There is a certain irony that you have stated that they wouldn't be workhouses and then described the basic philosophy of a workhouse - to provide shelter for paupers (unable to support themselves) but at the same time keep them unattractive to the impoverished (surviving on very limited means).

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    I should have phrased that as anticipating Guardian Housing headline as "Return of the Workhouse".

    As to viability - many homeless hostels of course refuse to admit those using alcohol/drugs/misbehaving due to mental health issues etc - and also many rough sleepers say they prefer the streets as they feel safer than in hostels.

    Whether Govt/LAs/Planners are yet ready for such an initiative remains to be seen - I suspect things will need to get even worse before that happens.

    OTH what you suggest is akin to Uni Halls of Residence which charge around £8000 pa per person

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