London councils to cap the price they pay for temporary homelessness accommodation
Local authorities could save up to £1,800 per household a year following a new pact between London councils to cap the price they pay for temporary homelessness accommodation.
An agreement, which has been circulated to councils, but not been made public, reveals that boroughs could be saving up to £1,800 per household if families stay in temporary accommodation for one year. This has been based on the first three months of the agreement coming into force, reports Inside Housing.
The deal has been made in order to tackle the rising costs of temporary housing which has been caused by private landlords moving away from longer leasing schemes and by letting agents creating competition between councils to rise their prices.
Under the confidential agreement, which came into effect in November, councils have decided on certain prices per night for temporary accommodation borough by borough
Figures collected by Shelter in August using Freedom of Information requests show that more than half of families in London have been in temporary accommodation for more than a year.
Neil Morland, a homelessness consultant, said: “The overall number of [temporary accommodation] units to choose from is shrinking and the price of these units is increasing. Landlords are very much in control of the market.”
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