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Landlords Switch to Temporary Accommodation to Increase Profits

The Housing, Communities, and Local Government Committee held a hearing in Parliament yesterday to examine the growing crisis of children living in temporary accommodation, with charities and policy experts describing severe impacts on families displaced from stable housing. Testimonies from the hearing revealed that, as rental costs soar, families are increasingly pushed into temporary living arrangements by landlords seeking higher payments from councils.

Laura Neilson, CEO of the Shared Health Foundation, testified that many landlords are evicting families to convert properties into temporary housing, which yields higher returns from local councils. “Local landlords are switching accommodation from social or private rent into temporary accommodation,” she explained, “because they can get higher payments from the council.”

According to Neilson, this pattern has become commonplace, worsening the housing instability faced by families. Her comments come as new statistics reveal over 150,000 children across England currently live in temporary accommodation, a number exacerbated by the severe lack of affordable social and supported housing.

Experts from the non-profit sector outlined the distressing realities facing these children and families. Francesca Albanese, executive director of policy and social change at Crisis, reported that over 60% of families with children in London have been stuck in temporary accommodation for more than two years. “Fundamentally, councils have no other option than to place people in temporary accommodation,” she stated, citing the gap between Local Housing Allowance rates and rising private rental costs, with a temporary rate increase scheduled to end in April 2025.

Emma Haddad, CEO of St Mungo’s, voiced concerns about the lack of viable housing options. “The biggest challenge at the moment is finding places to help people to move on,” Haddad said. “That is predominantly because of the drastic shortage of social and supported housing. And the private rented sector is absolutely unaffordable.”

Neilson further explained that numerous families face temporary accommodation due to unexpected evictions, job loss, or shifts in the gig economy. For these families, the experience is more than just financially straining; it also takes a toll on mental health, with impacts felt acutely by children. “Most parents are trying their best… and most don’t have significant addiction issues or criminal justice issues when they enter temporary accommodation,” she said. “What we do see is a massive deterioration in parental mental health in temporary accommodation… and that impacts the children as well.”

As the government prepares to launch a cross-ministerial taskforce on homelessness, led by Deputy Prime Minister and Housing Secretary Angela Rayner, charities have been invited to join an advisory expert group set to meet next week. Among the suggestions brought to the committee was a call to increase Local Housing Allowance rates to align with current median rents, proposed by Rebecca Walker, director of CARIS Families. Walker argued that even moderate-income families in London can no longer afford private rents, especially when faced with relationship breakdowns.

Neilson underscored the physical dangers of temporary housing conditions, noting her work in A&E, where she has treated children injured in precarious living environments. “I’ve seen a child with a femur fracture, a child with a skull fracture, a child with significant burns and lots of children with respiratory conditions, all of it caused by their social conditions,” she reported. She criticized the practice of housing families alongside single tenants, including individuals recently released from prison, without adequate safeguards. This arrangement, she warned, often subjects families—particularly single mothers escaping domestic violence—to unsafe environments.

Walker echoed these concerns, contrasting the atmospheres between family-only hostels and those that mix single individuals with families. “The atmosphere in the family-only hostels is night and day. They feel much safer,” she said.

The inquiry also touched on establishing minimum standards for temporary accommodation. Neilson questioned the appropriateness of various housing conditions for children, from caravan parks in winter to office block conversions and frequent relocations between B&Bs. “Is a caravan reasonable to bring up your children in the middle of January? Is a converted office block reasonable?” she asked, emphasizing the need for clearer regulations on living conditions.

Earlier this week, Homes England Chief Executive Peter Denton indicated that investors would support temporary accommodation if local authorities led the process, highlighting the potential for a collaborative solution to the housing crisis. As MPs begin to examine the evidence, the calls for immediate action are growing louder, with advocates insisting that the safety and stability of children in temporary accommodation should be prioritized.

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