Person looks out of the window of a hostel

Tackling the financial strain of temporary accommodation

In order to try and tackle the very root causes of the housing crisis, Greater Manchester Combined Authority has announced the launch of a new Housing First Unit.

This comes as a piece of research that was commissioned by the combined authority has outlined the financial strain that the costs of temporary accommodation are placing on local authorities. According to the research, approximately £74.6 million is being spent on temporary accommodation across Greater Manchester alone, with the number of people living in that temporary accommodation now at an all-time high.

With 5,649 households now living in this accommodation, including 7,679 children, the new Housing First Unit will tackle the housing crisis by focusing on three key areas. These are:

  • Increasing housing supply
  • Driving up housing standards
  • Supporting Greater Manchester residents
GM housing first QUOTE

Greater Manchester Mayor Andy Burnham said:

“The £75m our councils are spending on these rents is just the tip of the iceberg. It doesn’t include the cost of finding that housing, let alone the human toll of living in such an insecure situation.

“Our reliance on temporary accommodation has left thousands of families in a limbo that is blighting their life chances and damaging their health and wellbeing. Living in a hostel or B&B makes it harder to cook healthy meals, do homework, hold down a job, see friends and family or visit a doctor when you need to.

“Our Housing First Unit will work to make sure that everyone in Greater Manchester has a home that is safe, secure and sustainable. Giving everyone a good, safe home would be one of the best investments the country could make and would take pressure off other public services and public finances.”

With demand for social housing in Greater Manchester currently dwarfing the supply by 260%, the cost of temporary accommodation has spiralled. Combining this factor with the strict rules around how local authorities can cover rental costs and the fact that only 46% of the costs were able to be recovered from central government – a net loss of £43 million annually has been created.

Alongside the launch of the Housing First Unit, leaders across the region have also approved a new plan that will see better quality temporary accommodation delivered.

 

Image credit: iStock

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