Councils tackle rising temporary accommodation costs with new solution

Councils are spending thousands of pounds on temporary accommodation but a new solution could cut the cost and help tenants in arrears.

According to The Telegraph, councils are willing to spend thousands on rent arrears to help keep tenants off housing waiting lists, which have soared in recent years.

According to homelessness charity Crisis, in the east of England alone, 16 councils pay landlords rent in advance on behalf of tenants,

Support people to stay in their own homes

According to the District Council Network (DCN), three councils are spending more than half of their council tax revenue on temporary accommodation, with Crawley Borough Council at 67%, Hastings Borough Council at 58%, and Dartford Borough Council at 50%.

DCN’s research suggests that 16 district councils spent equivalent to over 25% of their council tax income on temporary accommodation last year.

As the demand for temporary accommodation continues to rise, many councils are focusing on helping tenants who are facing rent arrears.

Sam Chapman-Allen, chairman of the District Councils’ Network, told The Telegraph, councils were trying “to shift local public spending to a more preventative model” – which often includes support for tenants who are falling behind with rent.

He said: “Such services can prevent the need for temporary accommodation, which is expensive and often overcrowded.

“It’s far better to support people to stay in their own homes, allowing them to retain their own support network and to ensure that children don’t face the turmoil of having to move school.”

Avoid huge temporary accommodation costs

Denzel Matsaudza, CEO of Social Housing Options, works with councils and landlords to help keep tenants in their property.

Denzel told Property118: “The aim of the game is this there is no council that wants to see a family evicted because once a family is evicted, they end up in temporary accommodation which can cost the council thousands of pounds.

“Some families also end up living in temporary accommodation for years and we are seeing the temporary accommodation bill rising.”

Denzel says he is working with councils and landlords to avoid the huge costs of temporary accommodation and keep tenants in their homes.

He explains the process of how it works: “One example is we had a family whose landlord put the rent up by £700 per month. This was due to a variety of factors, such as the landlord’s mortgage costs skyrocketing, but the family simply couldn’t afford the rise.

“What we did is we spoke to that local council and got a one-time shortfall payment of £7,000 that was paid directly to the landlord’s bank account, and this then enabled us to sustain that tenancy and prevent eviction and avoid homelessness.

“What we can do for other landlords and letting agents is they can tell us what the shortfall is we will then work with that family to make sure we can get that shortfall payment by the council to sustain the tenancy.”

He adds: “It goes beyond shortfall payments as well. We can also assist families struggling with rental arrears. Recently, we supported a family that owed over £3,000 in back rent.”

Fill out the form below to contact Denzel and his team at Social Housing Options for a no-obligation chat.

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