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Temporary Accommodation and the Housing Crisis: The Role of Development


By Vanisha Solanki

The housing crisis is a persistent and multifaceted challenge faced by many people, with one of its most visible aspects being the issue of temporary accommodation. Local authorities are grappling with the pressing need to provide safe, secure and suitable accommodation for individuals and families facing homelessness. 

This article will explore the complexities of the housing crisis and delve into how thoughtful and sustainable development can play a pivotal role in addressing the challenges of temporary accommodation. 

Temporary accommodation is, by definition, supposed to be temporary but for many families it has become their long term and their permanent accommodation. This accommodation is normally emergency shelters, hostels, hotels, bed and breakfast, and transitional housing. These different forms of housing can lack the necessary amenities leading to increased stress for the households that are already facing difficult circumstances. 

As property prices soar and rental markets become increasingly unaffordable, residents find themselves without stable housing options. This leads to a cycle of uncertainty, increased stress, and less than ideal living conditions. Over time, the strains on these facilities can contribute to a lack of stability and hinder the development of more permanent solutions. 

Local councils play a crucial role in responding to the immediate needs of individuals and families experiencing homelessness and temporary accommodation serves as a vital stopgap measure, providing a roof over people’s heads and access to essential services. However, the demand often far outweighs the available supply, leading to overcrowding and less-than-ideal living conditions.

The cost of temporary accommodation presents a significant challenge and often comes with substantial financial burdens. The continuous need for maintenance, staffing, and facilities for temporary accommodation results in ongoing expenses. These resources could be channelled into more lasting solutions, such as the construction of affordable housing units.

Development initiatives that focus on creating affordable and permanent housing options are crucial in providing sustainable solutions to the challenge of temporary accommodations. By investing in the construction of affordable housing units, local authorities, developers, and stakeholders can significantly reduce the reliance on temporary accommodation. These initiatives not only address the immediate need for shelter but also contribute to the long-term stability of individuals and families.

Furthermore, development projects that prioritise mixed-use developments, urban renewal, and adaptive reuse of existing structures can play a pivotal role in transforming underutilised spaces into livable communities. Mixed-use developments integrate residential spaces with commercial, recreational, and educational facilities, thereby creating vibrant neighbourhoods that are not solely reliant on housing. This approach fosters a sense of community and self-sufficiency, making it less likely for individuals and families to end up in temporary accommodation due to financial or social challenges.

Collaboration between local government, private developers, non-profit organisations, and community stakeholders is essential in driving these development efforts forward. By providing incentives for affordable housing construction, streamlining regulatory processes, and allocating resources to development projects, we can facilitate the creation of stable, inclusive communities that reduce the need for temporary accommodation. In the larger picture, development not only addresses immediate housing needs but also contributes to the overall well-being, socio-economic stability, and resilience of communities, making it a critical component in combating the reliance on temporary accommodation.

The private rented sector (PRS) plays a crucial and wide-ranging role in addressing the substantial challenges associated with the growing prevalence of temporary accommodation that local authorities are currently contending with. One notable strategy employed by local authorities involves discharging their duty to accommodate individuals and families in need directly into the PRS. By collaborating with private landlords, local authorities can swiftly secure housing options for those experiencing housing instability or homelessness. This approach not only provides immediate shelter but also taps into the existing housing stock, optimising its use for those in urgent need. Moreover, this collaboration can ease the burden on local authorities’ resources, as they can leverage the expertise of private landlords in property management and maintenance. While the PRS aids in fulfilling immediate housing needs, it also underlines the importance of implementing comprehensive and sustainable housing policies to ensure the long-term well-being of individuals and families in search of stable housing solutions.

Whilst all of the solutions I have mentioned are crucial, the government must step up. Local housing allowance rates play a pivotal role in shaping the affordability landscape of housing within a region. These rates, established by government authorities, determine the maximum amount of financial support individuals and families can receive to cover their housing costs when relying on benefits or housing assistance. Calculated based on local rental market conditions, the local housing allowance rates aim to strike a balance between providing adequate support to recipients and ensuring that the cost remains reasonable for both tenants and the government. These rates have a significant impact on the housing choices available to those seeking assistance and influence the overall housing market dynamics, making them a crucial factor in promoting accessibility and stability in housing for vulnerable populations.

The impact of LHA (Local Housing Allowance) rates shortfall is a direct consequence of the government’s choice to freeze these rates over an extended period. This decision has led to a misalignment between LHA rates and the escalating rental costs in many areas. Consequently, the disparity between the assistance provided by LHA and the actual rental prices has grown substantially in real terms. This widening gap places significant financial strain on individuals and families reliant on housing benefits, as they must cover the difference between their LHA allowance and the true cost of housing. This situation not only exacerbates housing affordability issues but also makes it increasingly challenging for vulnerable populations to secure suitable accommodation, potentially contributing to homelessness and housing instability.In the face of the ongoing housing crisis and the pressing need for effective solutions to the issue of temporary accommodation, the importance of robust development strategies cannot be overstated. To address the crisis at its core, an essential step is the construction of more affordable housing units, providing a lasting and dignified solution for those in need. Simultaneously, the private rented sector (PRS) emerges as a crucial partner in alleviating the burden, offering immediate shelter options while local authorities navigate longer-term solutions. However, the role of the government remains paramount, not only in fostering collaboration between local authorities and the PRS but also in recalibrating Local Housing Allowance (LHA) rates to reflect the ever-changing rental landscape. It is through the synergy of these factors that progress can be made in tackling the housing crisis, offering individuals and families a chance for stability and a place to call home.

Vanisha Solanki, Account Director and Cabinet Member for Housing and Homelessness, London Borough of Redbridge.

31 August 2023

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