Starmer reassures and worries on homelessness

Originally written as a column for Inside Housing.

If you’re looking for a chink of light ahead of the promised government strategy on homelessness, the number of homeless households living in bed and breakfasts (B&Bs) is down for the third quarter in succession.

But it’s only a chink since government figures for the end of March saw the total number of homeless households (131,140) and children (169,050) in temporary accommodation rise to new records

At the most expensive and temporary end of the spectrum, there were 3,870 families with children in B&Bs, down 28 per cent since Labour took power in July 2024. Of those, 2,300 had been there for longer than the six-week legal limit, a decline of 39 per cent. 

However, those falls were more than matched by an increase in the use of nightly paid, privately managed accommodation. This is also expensive and temporary but self-contained so that families do not have to share a bathroom and kitchen. 

This sub-sector took off after 2013 when the coalition government tried in vain to cut use of B&Bs and private landlords and management companies realised they could charge more on a nightly basis than for longer-term leases. 

Over the next seven years, the number of homeless households in nightly paid accommodation doubled and since 2020 it has almost doubled again to 46,710. Since Labour came to power the number of families with children in non-B&B nightly paid accommodation has increased by 27 per cent to 32,160.

Of those, more than half (17,810) had been there for more than a year and 14 per cent (4,640) for more than five years. 

By contrast, there were just under 25,990 households in private sector leased accommodation, roughly the same as in 2013 despite  a doubling in the total numbers in temporary accommodation overall. 

Trends like these highlight what’s at stake in the homelessness strategy both for homeless families stuck in temporary accommodation and for local authorities creaking under the strain of paying for it .

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A year of progress for Labour still leaves major gaps to be filled

Originally written as a column for Inside Housing.

A year into the Labour government how should we assess its record on housing?

It’s not hard to find reasons to celebrate, from the spending review announcement of £39 billion for the Affordable Homes Programme to the creation of a National Housing Bank within Homes England armed with an extra £16 billion in financial transactions capital.

Social rent is the priority after years when it was under threat of extinction and will account for 60 per cent of the renamed Social and Affordable Homes Programme (SAHP).

Social landlords have got what they asked for on rents and the long-term plan for social and affordable housing sets out how they must improve their existing homes, professionalise their staff and give tenants more access to information. 

The prospect of new financial flexibilities for local authorities and restrictions on the Right to Buy offer council housing its best opportunity in years to escape the straitjacket imposed by central government. 

But there are still many gaps to be filled when Labour sets out its wider plans in a long-term housing strategy and publishes its homelessness strategy. 

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Does the spending review live up to the hype?

Originally written as a column for Inside Housing.

This spending review represents a good start on housing – but it must only be a start. 

Highlights of the package delivered by chancellor Rachael Reeves on Wednesday included £39 billion over 10 years for the Affordable Homes Programme (AHP) and a 10-year rent settlement of CPI plus 1 per cent for social landlords.

Then add a consultation on the return of rent convergence, £1 billon extra for cladding remediation and equal access to government funds, £2.5 billon in low-interest loans plus for social landlords. 

Stir and combine with £950 million for councils to increase the supply of temporary accommodation, £10 billion in financial transactions to boost private investment and more to come for infrastructure and land remediation in Cambridge and the new towns, and this looks like great work by deputy prime minister Angela Rayner and the Ministry for Housing, Communities and Local Government (MHCLG).

But does the spending review really justify the headlines and is it really as ‘transformative’ as some in the sector are making out?

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What’s at stake in the spending review?

Originally written as a column for Inside Housing.

With a week to go until the most consequential spending review for ten years, the Treasury is facing desperate last-ditch lobbying from departments that have yet to agree their settlement.

Last week’s public intervention by chief constables warning that the government will fail to meet its pledges on crime unless they get more cash is sign enough of that.

So too the leaked memo from deputy prime minister Angela Rayner setting out options for higher taxes that was inevitably followed by more leaks about her spending priorities.

As of this week, the Ministry for Housing, Communities and Local Government (MHCLG) was said to be one of the departments yet to agree a settlement, alongside the Home Office, with the Department for Energy Security and Net Zero just finalising one..

By contrast with previous spending reviews, housing starts with the advantage of having a politically powerful secretary of state in charge – and Angela Rayner has repeatedly promised ‘the biggest boost to social and affordable housing in a generation’.

But the ‘biggest boost’ can mean many different things, some of them genuine, some of them not remotely up to the challenge of the moment.

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Smart thinking on homelessness

Originally written as a column for Inside Housing.

Within the next few months the government will set out what it intends to do about homelessness and how it will pay for it.

A new report argues that the prospect of the homelessness strategy and spending review present it with ‘a vital opportunity to shift away from reactive measures towards a more proactive and preventative model’.

A smarter approach to homelessness, published by the Institute for Government and Centre for Homelessness Impact, makes clear that the current system is achieving the exact opposite.  

Rather than providing permanent homes, the system keeps families with young children in temporary accommodation at a cost that can easily be £30,000 a year or more, with social costs even higher than that thanks to the knock-on effects on education and health.

But even as they try to book temporary accommodation, councils can find themselves out-bid by companies acting for other parts of government for accommodation for asylum seekers and prison leavers.

Despite evidence that prevention costs many times less, cash-strapped local authorities are forced to ‘retreat to short-term reactive responses in fulfilment of their immediate legal obligations, despite their often exorbitant cost’, often raiding prevention budgets to pay for it.

Structural barriers, most obviously a lack of social housing, block progress while the system creates ‘perverse incentives’ that ‘actively encourage inefficiencies and poor outcomes’.

As the latest homelessness statistics show, the number of homeless families and children in temporary accommodation was still rising in the fourth quarter of 2024.

The numbers of bed and breakfast did at least show a second consecutive monthly fall, but the numbers in nightly-paid accommodation are still rising along and there are eight times as many out of area placements as when Labour was last in government.

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Short-term fixes and long-term solutions to the temporary accommodation crisis

Originally written as a column for Inside Housing.

If anyone needs any reminding, two new reports reveal the depth and breadth of the crisis in temporary accommodation in England.

On Thursday the all-party Housing, Communities and Local Government (HCLG) Committee published the results of its inquiry into the ‘utterly shameful’ situation in a report that spells out the consequences for 164,000 children’s health, wellbeing, safety and education. 

The report reveals safeguarding risks including families with children ending up in the same temporary accommodation as strangers with a history of domestic violence or recently released prisoners. 

It highlights the huge costs of temporary accommodation (£2.3 billion and rising) and the consequences for local authorities but also raises serious questions about whether the legal framework and code of guidance are fit for purpose. 

And it raises issues ranging from the increasingly theoretical six-week legal limit families with children to be placed in bed and breakfasts(B&Bs) to use of multi-occupancy hostels that have the same shared kitchens and bathrooms but do not count as B&Bs to inadequate procedures for out-of-area placements.

To focus on just one of the knock-on effects, last week the Children’s Commissioner published research revealing a direct link between lack of a permanent home and a child’s performance at school. The more times a child moves home while at school the worse they do in their GCSEs.

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Time for long-term solutions to homelessness

Originally written as a column for Inside Housing.

No more sticking plaster politics was the promise from Labour at the general election seven months ago.

The 126,000 homeless families and 164,000 children living in temporary accommodation in England (according to the latest statistics published on Thursday) would surely agree that is way past time for short-term fixes. 

Legally entitled to permanent social housing, they can instead be stuck in temporary homes for years, frequently miles away from work, friends and family, often in bed and breakfasts (B&Bs) and sometimes living in conditions that contribute to the deaths of their children. 

Local authorities facing soaring costs for the most insecure housing that have pushed some to the brink of bankruptcy would also quickly agree.

And so did homelessness minister Rushanara Ali as she told a summit on ending homelessness organised by Crisis on Tuesday: ‘We must address this crisis and deliver long-term solutions’.

But until the spending review in the Spring and homelessness strategy to follow we will have to be satisfied with announcements like last week’s extra £300 million for affordable homes plus this week’s extra £30 million in emergency homelessness funding and pledge to extend Awaab’s Law to temporary accommodation.

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A scandal that calls for permanent solutions

Originally written as a column for Inside Housing.

Think of all the elements of the grim inheritance bequeathed to this government by the last one and perhaps the grimmest is the almost 160,000 children living, and sometimes dying, in temporary accommodation.

Homelessness minister Rushanara Ali called it ‘an absolute scandal’ in the Commons on Monday and ‘devastating’ at a Housing, Communities and Local Government (HCLG) Committee  hearing on Tuesday. 

One committee member spoke of meeting a constituent before Christmas who had been in ‘temporary’ accommodation for 14 years, so the entire period of Conservative-led government between 2010 and 2024.

This morning a report from the Public Accounts Committee (PAC) calls it ‘unacceptable’ and ‘alarming’ that almost 6,000 homeless families with children are in bed and breakfast, the worst form of temporary accommodation that is no longer the last resort the guidance says it should be. 

Of those, almost 4,000 have been in B&B beyond the increasingly theoretical six-week legal limit, a figure that is 23 times higher than in 2010. 

It is a scandal that comes at a huge cost for local authorities: £3.1 billion a year for homelessness services, including £2.1 billion for temporary accommodation at the latest count.

All this should be enough on its own to condemn the Tory inheritance but it is just part of a broader failure highlighted by the PAC.

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A tale of three targets

Originally written as a column for Inside Housing.

What’s in a target? Angela Rayner faced questions at the Housing, Communities and Local Government Committee this week and gave some illuminating answers to kick off 2025.

First up was the target that is a key milestone in the government’s mission on economic growth: the manifesto promise of 1.5 million additional homes over this parliament.  

The deputy prime minister faced a series of questions about whether the target is achievable and what will have to happen in later years to make up the shortfall when fewer than 300,000 a year are built in the early years.

She ran through the measures the government is taking and summed it up in an unfortunate metaphor: ‘So there are a number of levers that we’re pulling at the moment which will hopefully start to turn the tide, but it’s a bit like the Titanic, it’s not like one of the Hackney cabs that can turn really quickly. It will take more time in the early stages before we start to see the shoots.’

It’s clear what she meant but it wasn’t a good start to conjure up images of icebergs ahead. Much better was her admission that: ‘Even If I achieve and this government achieves the 1.5 million homes target, it is a dent. It is a dent in what we need to achieve as a whole country, to deliver the houses we desperately need.’

It was also good that she acknowledged concerns about development by housing  associations and Section 106 while promoting initiatives to accelerate new homes and remove blockages on stalled sites. So too her emphasis on the importance of land value capture, the grey belt and the balance that has to be struck with viability. 

But 300,000 new homes a year has not been achieved since the heyday of council housing so I was intrigued to see what she would say about social housing in the present day. 

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Why Labour must act after shameful Tory record on homelessness

Originally written as a column for Inside Housing.

Another quarter, another new record in the number of homeless people and children living in temporary accommodation. 

Take any measure you like and the homelessness statistics published today are beyond grim.

There are now 123,100 households in temporary accommodation including 78,420 families with 159,380 children.

All of these numbers are moving in the wrong direction, up around 5 per cent in the last three months and 15 per cent on a year ago – and all of them are the highest ever recorded in statistics that go back 20 years or more. 

Within those numbers, there are 5,910 homeless families with children living in bed and breakfasts and – most shameful of all – 3,770 of them have been there beyond the six-week legal limit.

When local authorities are starting to shrug their shoulders as they break the law, pointing out plausibly that they have no other option, it must be a time for this government to act. 

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