by Rachel Dunn 

One of the most significant challenges facing Local Authorities (LAs) is the scale and depth of the homelessness crisis. Rising costs and dwindling housing options have put many LAs at breaking point. The impact of the crisis on homeless households is devastating and the human impact for the families having to live in sub-standard, overcrowded and insecure temporary accommodation is overwhelming.

How has this crisis arisen?

This challenge is decades in the making. It stems from a shortage of genuinely affordable homes in both the social and private sectors, which is further compounded by complex welfare policies and restrictive funding regimes. These drivers are entirely out of the control of those who are tasked with responding to the impact. Even for those who work every day in the sector, navigating this minefield is incredibly difficult. To be blunt, I think no one in decision-making circles, all the way up to Whitehall, is yet to come up with a clear solution.

Actions that will have an impact

While all LAs face similar challenges – rising costs and shrinking availability – their starting points vary. Factors like the current TA portfolio, local Private Rented Sector (PRS) market, available LA owned assets and the social housing portfolio will inevitably shape a unique strategy. Below, I run through some different options to work out where to go next. We recommend exploring all possible avenues to test which might have the biggest impact:

1. Understanding and responding to household needs effectively is essential, from first contact to move-on. A strong wraparound service, built on the service offer, local partnerships and ongoing engagement with households placed in TA, helps families and individuals secure stable homes.
2. Develop a cost reduction strategy that considers the full homelessness journey – from prevention through to acceptance to move-on.
   • Focus on reducing your most expensive TA first, starting with procuring cheaper alternatives, using data to inform decisions.
   • Explore options to use your own stock, re-purpose other assets or find long-term TA contracts.
   • Don’t stop there – making impacts in prevention and move-on also hugely impact costs.

Use this combined insight to create short, medium and long-term plans for a targeted, cost-effective approach.

3. A clear PRS strategy is vital, but barriers like availability, cost, and tenure length remain key challenges and are often the very causes of homelessness. Assess available revenue for securing PRS properties and weigh the cost-benefit and cost avoidance of this approach. Explore partnerships with guarantor services and invest in a clear offer to attract private landlords.
4. Review your operational activity to ensure all financial levers are being adjusted to maximise income and minimise spend. Consider Housing Benefit assessments for new households, void management, inter-TA move costs and high-cost placements. Keep policies updated and maximise their impact, especially your housing allocations policy and those affecting move-on.