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Ministers will tomorrow launch a new £20m ‘Private Rented Sector (PRS) Access Fund’ aimed at helping those faced with homelessness to secure a tenancy.
The Ministry of Housing, Communities and Local Government said the funding will help up to 9,000 vulnerable people into private rented homes.
Part of the government’s rough sleeping strategy unveiled in August, it will be used to help establish or expand council schemes to guide people into sustainable PRS tenancies.
Some local authorities offer financial support for new tenancies by paying deposits or initial rent payments, while the money may also pay for schemes where councils manage properties on behalf of private landlords.
The launch has been timed to coincide with World Homeless Day.
Housing and communities secretary James Brokenshire said: “It is vital we give people facing homelessness a route out of it and a chance to rebuild their lives. The private rented sector has an important role in this.
“This £20m fund will allow councils to put in place vital new schemes so that those at risk will have the support to secure their own tenancy.
“It is just one part of the wide-ranging work we are doing to help tackle all forms of homelessness, including our rough sleeping strategy, as we ensure more homes are made available for those in need.”
The fund is modelled on a programme run by homelessness charity Crisis to support PRS access schemes between 2010 and 2014, which supported 153 schemes and created 8,000 tenancies.
Councils are able to submit separate bids for the fund, which will be open for six weeks from 10 October.
A quarter of the money is available for the 2018/19 financial year, with the remaining £15m earmarked for 2019/20.
As of the beginning of October, public bodies are now legally required to refer people identified as being at risk of homelessness to the local authority.
The duty to refer, which affects prisons, NHS trusts and job centres among others, is part of the Homelessness Reduction Act introduced in April.