Decision details

4.1      Genevieve Macklin (Head of Strategic Housing), made a presentation to the Committee. The key points to note were:

§  The level of usage of “bed and breakfast” accommodation –short term emergency accommodation paid for on a nightly basis - has been increasing since 2012/13.

§  As a result of the massive increase in demand for nightly paid accommodation the total annual expenditure level has increased more than sevenfold in three years. The main financial impact for the Council is the limit set by Government on the proportion of that expenditure which can be reclaimed by the Council.

§  There are a number of factors driving this increase, and despite these broadly being beyond the control of the Council, nevertheless the Council retains a statutory duty to respond to the problem and also bears the financial pressure associated with it. They include:

o   property price inflation which continues to hugely out-strip other measures of inflation, and which in turn provides incentives for landlords to seek higher rents than can be afforded by the Council or otherwise to sell their properties and cash out of the housing market while prices are high

o   on-going shortfalls in the new supply of all forms of housing and in particular affordable housing and by a general fall in the movement of current tenants within and out of existing stock.

§  In response to this crisis the Council has initiated a wide ranging and assertive programme of interventions in the local housing economy, including:

o   the construction of new homes

o   the acquisition of properties for temporary accommodation purposes which provide a more sustainable and better quality alternative to bed and breakfast

o   piloting innovative methods of construction to provide more homes more quickly

o   reducing costs by negotiating with providers of emergency accommodation and landlords and procuring properties at lower cost

o   working across London on a sub-regional basis and with all London Councils on the Inter Borough Temporary Accommodation Agreement to agree rates with providers to keep costs down

o   managing demand by working more intensively to prevent homelessness

o   working on a range of policy changes order to manage demand to address this crisis

4.2      In response to questions from the Committee, the following was noted:

§  The two large properties acquired by the Council to be converted into hostels in the short term in order to provide the Council with access to additional short term accommodation are Hamilton Lodge and a building on Canonbie Road.

§  The purchases would be self-financing, officers would make sure that the capital cost could be covered by the rent achieved.

§  The Committee commended the work of officers in attempting to tackle the issues in relation to homelessness and temporary accommodation.

4.3      RESOLVED: That the report be noted.