Understanding homelessness nationally
Local authorities are working in an increasingly challenging environment, we have faced the Covid-19 pandemic, the rising cost of living, and we are seeing an increase in complex and diverse groups requiring support from local authorities As a result, there is a rising demand for homelessness and housing services, with increasingly limited options to provide support and relief.
The Government’s Statutory Homeless Annual Report outlines that in England alone, 298,430 households were assessed as either being at risk of homelessness or already homeless from April 2022 to March 2023, which is a 7.3% increase from the 2021 financial year.
5.1. COVID-19, and a new national strategy
In 2020, during the Covid-19 pandemic, the Government implemented the ‘Everyone In’ policy. This policy equipped local authorities with the mandate and resources to provide temporary accommodation for all rough sleepers to keep them safe during the pandemic. Around 37,000 rough sleepers in England were housed in temporary accommodation. The policy enabled housing teams to help even the hardest-to-reach and street-attached rough sleepers.
However, Shelter’s 2021 ‘Everyone In: Where Are They Now?’ report estimated that more than 77% of those 37,000 rough sleepers that the policy helped, had not moved into settled accommodation. This policy was a short-term solution that successfully provided rough sleepers with temporary accommodation. Yet, it did not tackle the issue of limited affordable accommodation for people to move into. It also did not ensure that there was adequate support to help people maintain long-term tenancies.
5.2. Housing affordability and availability
There is a growing lack of affordable housing in the UK. Recent global factors, such as the cost-of-living crisis, rising energy bills, and inflation rising at unprecedented levels, have made it much more challenging for residents to pay essential housing bills. As well as this, welfare support, such as Universal Credit and the Local Housing Allowance, have not increased in line with rising costs (though LHA rates will increase from April 2024. Figures from the ONS indicate that the average home in 2000 cost 4 x the average salary. By 2022, this had risen to) 8.3 x the average salary. The rise in interest rates between August 2022 and March 2023 further impacted on the affordability of mortgages for homeowners and prospective buyers. Landlords are also impacted by the challenge in paying mortgages and as a result, many increased their rental rates.
There is also a shortage of available accommodation. There has been a decline of national housebuilding, from a peak of just over 350,000 completions in 1968 to an average of 165,000 completions over the five years to 2022 (DLUHC Live Table 244). This includes a drop in new social homes being built – just over 9,500 new social homes were built in 2022/23, alongside just over 24,000 Affordable Rent homes. The number of Social rented homes also continues to decrease as tenants purchase their properties under the Right to Buy scheme. The pool of available private rented accommodation is also reducing as many landlords are selling up and exiting the sector entirely. So, whilst residents are increasingly struggling to afford housing costs, there is a growing lack of available accommodation. Therefore, people are struggling to find affordable housing to buy or to rent, and there is an increasingly long waiting list for social housing both locally and nationally. People face a lack of viable options if they do become homeless or are threatened with homelessness.
Local councils are having to use temporary accommodation in higher numbers and for longer periods to house people who are homeless. In England, the number of people living in temporary accommodation has risen by an alarming 89% in the last 10 years, according to the Local Government Association, which costs Local Authorities about £1.74billion, depleting spending from other vital interventions. This is largely due to a reduction in options of affordable accommodation for people to move into.
5.3. Refugees and EU Nationals
Local authorities have faced additional demands on their housing with international developments resulting in UK policy changes. Local authorities have a duty to provide accommodation for people who have been evacuated from danger, under various schemes. This includes the Afghan Relocations and Assistance Policy (ARAP) and Afghanistan Citizens Resettlement Scheme, Ukrainian placement schemes, and the Hong Kong UK Welcome Programme. For example, Ukrainian nationals were hosted by UK families, but many placements have now ended. Therefore, local authorities have a responsibility to help them secure housing and avoid homelessness.
The impact of Brexit also means that there is a new sub-group of European nationals who no longer have the right to work in the UK. If they are homeless or sleeping rough, they no longer qualify for public funding and their housing options through local authorities are highly limited. This inevitably impacts local health services and frontline workers who face worsening health conditions for those people due to their unresolved housing situation.