Council approves plans to tackle temporary housing crisis

Birmingham City Council’s cabinet has approved proposals to increase the supply of temporary accommodation and reduce the council’s reliance on B&Bs.

Around 23,000 homes are needed for social housing in the city but the council is under significant financial pressure to cope with the demand. It’s currently spending £2.2m per month on temporary accommodation and has therefore developed a range of initiatives to boost supply.

It also needs to meet statutory obligations around housing families with dependent children in B&Bs for no more than six weeks, but it currently has 500 families in this position.

The council originally planned to deliver 300 newly acquired homes per year to be used as temporary accommodation as an alternative to B&Bs. This programme has been significantly reduced due to the council’s financial challenges.

One proposal will see the creation of a ten-year and one-day leasing arrangement for almost 1,000 private sector leased properties currently used by the council as temporary accommodation.

The lease deals enable the council to use regulation to claim back a larger proportion of rents through subsidy. It plans to use the funds to invest in more leases and housing options.

Other proposals include the expansion of a pilot to develop family-supported exempt accommodation to change the housing from single people into family homes, a reduced acquisition programme, and the potential conversion of further premises into a Homeless Centre.

Councillor Jayne Francis, cabinet member for housing and homelessness, said: “The housing challenges that Birmingham City Council faces cannot be overstated.

“The country is experiencing a severe housing crisis, with demand for accommodation at an all-time high. This crisis is putting significant pressure on our housing support services, as is happening with many other councils in the country.

“Our current spending of £2.2m per month on temporary accommodation is unsustainable, and this spending can be reduced by decreasing our reliance on B&Bs to house families in need.

“With costs so high and so many families in need, we don’t have the option to do nothing—we have to take bold action to save money and provide better service to families.

“The council’s financial challenges, the national housing crisis, and our statutory obligations present an incredibly challenging set of circumstances for us. But action is needed to stem the increased use of B&Bs to reduce costs, and to house families in severe need in suitable homes. Wherever possible savings will be invested in securing long-term homes for households, often in the private rented sector.

“The proposals are a step towards us fulfilling our statutory obligations and achieving our aim of being a financially sustainable, well-run council that delivers good services to citizens”.