The UK’s affordable housing shortage is a pressing point on the political agenda. As Labour sets out ambitious targets for the future of the sector, there’s an urgent need to focus on standards and solutions for those living in temporary accommodation today.
Here, John Angus, Managing Director at Switch Management Ltd, explores the current challenges in providing safe and secure housing, and how leveraging support from the private sector can play a vital role in raising living standards.
A record 123,000 families are living in temporary accommodation in England – indicative of the UK’s growing affordable housing crisis.
Amidst a backdrop of political upheaval, addressing the issue remains a key government focus, with a raft of new legislation and funding announced by Labour in recent months.
In December, the prime minister Sir Keir Starmer set out his “plan for change”, detailing six milestones for the voting public to measure his government against at the next election. This included a pledge to build 1.5million homes in the next five years in response to the national housing shortage.
£500m in funding for the Affordable Homes Programme (AHP) was previously announced in Labour’s Autumn Budget. Yet, this funding will only translate into 5,000 new affordable homes – just 0.3% of the government’s 1.5million target.
With a widening gap between supply and demand, housing associations (HAs) and local authorities (LAs) face immediate challenges in providing safe and secure accommodation for those in need. To help address this, partnerships between the public and private sectors can provide greater access to the quantity and quality of housing required.
Escalating demand
In England, more than one million families and individuals are on the waiting list for a social home. In response, the National Housing Federation (NHF) and the charity Shelter have called for 90,000 new social homes to be built annually for the next decade – a target far exceeding current build rates.
Meanwhile, vulnerable individuals and families across the UK have become reliant on LAs placing them in temporary accommodation. This can encompass a wide range of tenancies, from short-term hotel stays and expensive city-centre B&Bs, to private properties, each with varying levels of health and safety compliance.
Recent data from the NHS-funded National Child Mortality Database revealed that temporary accommodation has contributed to the deaths of at least 74 children in England in the last five years, 58 of whom were babies under the age of one. Any death in temporary housing is a tragedy and this shocking loss of life reflects the need for industry-wide reform.
Working in partnership
Greater collaboration between the public and private sectors could help address two of the key challenges in temporary accommodation today: escalating costs and sub-par standards.
For landlords, there is an opportunity to work with specialist housing providers to not only help increase the quality of housing stock, but to simultaneously maximise the value potential of their assets.
Residential programmes offer a number of benefits for landlords. Two-year tenancy agreements with annual incentives means guaranteed rental income and low tenant turnover rates; professional property managers can minimise the administrative burden, taking full responsibility for lettings, tenancies and maintenance issues; and fully underwritten bills provide additional financial security.
For local authorities, the cost of sourcing temporary housing can be up to three times more than the local rental sector, but the accommodation often isn’t suitable for families to occupy. A recent report by the Centre for Homelessness Impact revealed that the net local authority expenditure on temporary accommodation more than doubled from £479m in 2018-19, to £1,058m in 2023-24 – an 80% increase in real terms.
Private partnerships can therefore deliver significant cost savings for the public purse. This is increasingly important, considering new government spending reviews. In December, Rachel Reeves announced that government departments must identify 5% “efficiency savings”, as the Treasury established the ‘Office for Value for Money’ to advise the Chancellor on eliminating “wasteful spending”.
Raising standards
It’s evident that effective public and private sector partnerships can help to identify inefficiencies, streamline operations, and minimise costs. But it’s important to note that saving money should not equal lower quality services or standards.
By leveraging the expertise of specialist housing providers, vulnerable families can be relocated out of temporary accommodation into more stable and secure housing. Regular, in-depth inspections can ensure all properties are good quality and fully compliant against enhanced health and safety standards.
Proper collation of resident feedback can also help to continually improve standards and identify the need for additional support. For example, through our Switch Housing programme, which sources residential accommodation for vulnerable families, we have been proud to deliver tailored support programmes in response to tenants’ individual needs, including monthly food banks, school uniform provisions, and discounted public transport.
Looking ahead
In response to the figures from the National Child Mortality Database, Angela Rayner said the government would allocate £1bn to councils to provide “safe, secure and stable housing”.
While additional investment is a credible solution, there should also be a focus on building public and private sector partnerships to help address key challenges in temporary accommodation. By working together, private landlords and specialist housing providers can provide tangible solutions for HAs and LAs in the face of increasing demand. And, most importantly, ensure vulnerable families across the UK have a safe and secure place to call home.