Housing associations can be a solution to the temporary accommodation crisis

I grew up in council housing. It provided me and my family with the stability we needed to get on in life and, eventually, find a home of our own. I strongly believe children should grow up in a suitable home, not become statistics about the lack thereof.

At L&Q we believe everyone deserves a quality home which gives them the chance to live a better life. This is why we launched Project 123 with the G15 and London Councils last year. Together, we’re exploring ways in which housing associations can work with councils to deliver solutions to the temporary accommodation crisis in the capital. But we need to move past dialogue and prove we can also be part of the solution.

The latest government data shows London boroughs collectively spent £1.6bn on homelessness last year, including around £114m on temporary accommodation each month. This equates to £4m each day – 68% more than they were spending when we launched Project 123.

“We need to act now to reduce the financial burden on councils and find better short-term homes for people. Housing associations can be a key partner in this”

Faced with a severe shortage of affordable homes, councils are forced to rent more-expensive commercial accommodation. At a time when public spending should be on social housing, local authorities’ budgets are being squeezed by these spiralling costs.

The long-term solution is a significant expansion of the social housing stock we have available. But we need to act now to reduce the financial burden on councils and find better short-term homes for people. Housing associations can be a key partner in this.

As social landlords, housing associations have the resources and expertise to navigate this environment. We have the relationships and know-how to deal with local authorities and regulators, as well as the private sector and potential investors.

Through Project 123, L&Q is progressing a number of deals with London boroughs and preparing sites for modular council housing, purpose-built for suitable temporary accommodation. Modular construction has its challenges, rooted in both perception and reality, but it is a promising way of providing decent homes for short-term use at scale.

We also have a number of sites that are not yet ready for permanent occupation but could provide meanwhile use for families in dire need of suitable temporary homes. We can lease or sell these to local authorities to ensure fewer children spend their holidays in a crowded hotel room.

Through trialling these deals, contracts and construction models via Project 123, we seek to find practical solutions to this crisis. We want to develop options other housing associations and councils can adopt, and empower others to act.

“Modular construction has its challenges, rooted in both perception and reality, but it is a promising way of providing decent homes for short-term use at scale”

Right now, councils are caught in a spiral of short-term spending that is hard to break out of. Project 123 represents a medium-term solution which can provide respite from this, and free up public-sector capacity that could be used to tackle the longer-term housing shortage.

This partnership model will only be successful if adopted at scale by more councils and housing associations across the country, and with investment from national and regional government, including the Greater London Authority.

The scale of the challenge is huge. We know that only a return to social housebuilding at scale will allow us to truly resolve this crisis. Housing associations delivered 78% all affordable housing in England last year, but new starts are slowing as the sector’s finances are stretched. A 10-year rent settlement is needed to give the stability and confidence needed to meet the government’s ambitious targets of 1.5 million new homes.

We need to build and we need to build now, otherwise I dread to think what next year’s statistics will look like.

Angie Hooper, new business director, L&Q