Proposals approved to boost the supply of temporary accommodation in Birmingham

Published: Tuesday, 10th September 2024

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

Reflecting the very high level of demand, and financial position of the council, a range of innovative initiatives have been agreed.

One of the proposals will establish a 10-year plus one-day leasing arrangement for nearly 1,000 private sector leased properties currently used by the council as temporary accommodation.

These new leasing arrangements will allow the council to use regulation to claim back a larger proportion of rents through subsidy, allowing for further investment in housing options, including more leases.

Reducing the use of B&Bs to house people is a priority for the council and forms part of its recovery plan to be a financially sustainable, well-run council that delivers good services to citizens.

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.

"The council also has a statutory obligation to not home families with dependent children in B&Bs for more than six weeks, which needs to be met.

"Currently, we have over 5,000 households in temporary accommodation. More than 500 of these are families with dependent children who have been in B&Bs for more than six weeks.

"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.

"Having leasing arrangements for longer than 10 years is a new and innovative practice. Given the innovative nature of these proposals, the council has consulted with multiple stakeholders, including the Department for Work and Pensions and the Ministry of Housing, Communities & Local Government."

The council's original plans for temporary accommodation have had to be reconsidered in response to its financial situation, and the leasing scheme is one of a collection of proposals approved by the cabinet. The other proposals included the expansion of a pilot to develop family-supported exempt accommodation, a reduced acquisition programme, and the potential conversion of further premises into a Homeless Centre.

The pilot on family-supported exempt accommodation is converting supported exempt accommodation used for single people into family homes. Expanding the pilot provides more of the family homes the city badly needs and helps the council meet its statutory obligations around housing families with dependent children in B&Bs for no more than six weeks. This family-supported exempt accommodation model is being developed with providers on the council's preferred list, as these providers meet the council's set quality standards.

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.

Councillor Jayne Francis, added:

"We are fully aware of the difficulties and suitability that Homeless Centres present for the people living there. However, the cost savings these centres provide will allow us to reinvest in providing a better-quality service in the future. We can only provide good services while being financially sustainable.

"Expanding the family-supported exempt accommodation pilot will help to address the oversupply of supported housing for single people in the city. The current supported exempt accommodation model has eaten away at family homes, making it harder for us to meet our statutory obligations.

"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."

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