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Private Landlords and Hotels Profiting from England’s Underreported Homelessness Crisis

Photo credit: www.theguardian.com

Exposing the Hidden Crisis of Homelessness in England

Recent investigations reveal alarming practices among private landlords and hotel operators who are charging local councils exorbitant rents for temporary accommodations designed for those at risk of homelessness. This troubling situation underscores the gravity of England’s ongoing homelessness crisis.

Local authorities across the nation are paying, on average, 60% more for rooms in temporary housing such as bed and breakfasts and hostels than they would in the private market for comparable housing. Notably, half of these councils are paying double the local market rates.

Currently, over 100,000 households are living in temporary accommodations, positioning the UK as having the most severe homelessness issue among developed nations, particularly when considering this demographic.

Experts warn that the country has inadvertently fostered a £2 billion industry composed of insufficiently regulated temporary housing providers, some of whom are offering substandard and unsafe living conditions. Reports from residents indicate unsanitary and hazardous environments.

“The state of temporary accommodation highlights a significant societal failure. Families are often trapped in these unsuitable conditions for months or even years, moving from place to place with little notice,” stated Mairi MacRae, the director of campaigns and policy at Shelter.

She noted that while it is scandalous that private entities profit from this crisis, local councils are left with few options, compelled to pay these high rates to prevent families from becoming homeless.

Temporary accommodation is intended to serve as a short-term solution while councils assess individuals’ eligibility for social housing and find more stable living arrangements. While some councils utilize their housing stock, the majority depend on bedsits, private rentals, B&Bs, and hotels.

Recent years have shown a sharp increase in temporary housing due to soaring rents, cuts to housing benefits, and dwindling availability of social housing, which has led many to remain in temporary settings for extended periods.

In the previous year, councils in England spent over £2.1 billion on temporary accommodations—an increase of nearly one-third compared to the prior year. In London, boroughs are allocating approximately £4 million each day on emergency housing, which comprises 75% of their total housing budgets.

The demographic most affected consists largely of families; currently, 164,000 children in England are growing up in temporary housing—a record high. Alarmingly, nearly 17,000 of these families have been in these situations for over five years.

The quality of temporary accommodations is frequently inadequate; a report by the Shared Health Foundation indicated that such placements have been linked to the deaths of at least 74 children over the last five years, with 58 of them being infants.

The substantial funds spent by councils on emergency housing have inadvertently led to a profitable market for property owners and agents, often without sufficient resources for adequate inspections of these accommodations.

A Freedom of Information request made by The Guardian sought to reveal how councils allocate funds for temporary housing and what providers they engage. Responses from about half of the councils were utilized, alongside public spending data and rental statistics, to expose the financial implications of emergency housing.

The findings indicate that the high costs associated with temporary accommodations are consuming more than a fifth of the core budgets of certain councils. Hastings, for instance, spends over 50% of its core budget on emergency housing.

The local council recently informed MPs that its refusal to use bed and breakfasts contributes significantly to its financial burdens. Despite being classified as unsuitable for families with young children, B&Bs constitute 30% of national spending on temporary accommodations.

Crawley council has warned that the expenses related to temporary housing are presenting a critical risk to its finances in the coming years.

Overall, the UK has a significantly higher number of people residing in temporary accommodations compared to other developed nations, making its homelessness problem more severe than that of its peers. Data from the Organisation for Economic Cooperation and Development shows that in the UK, 40 individuals out of every 10,000 are homeless, predominantly in temporary housing. This rate is nearly one-third higher than that of France and double the figure in the United States.

A recent parliamentary report characterized the situation as “utterly shameful.”

Kate Henderson, CEO of the National Housing Federation, emphasized the waste of taxpayer money on exorbitant temporary solutions, stating that annual housing costs have risen by £13 billion since 2010 due to significant cuts in funding for affordable housing.

Interviews with individuals currently or previously in temporary housing reveal the challenges of residing in spaces unsuitable for long-term family living. Aimee, who wished to remain anonymous, shared her experience in a hotel plagued by rodents, stating that the conditions were so unacceptable her children chose to stay with their grandmother instead.

“What was meant to be a 50-day stay turned into two years—mostly without my children. I was told I would have housing arranged within four weeks, but here I am, still waiting two years later,” she lamented.

Additional reporting by Sammy Gecsoyler and Jessica Murray

Source
www.theguardian.com

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