Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 1-19)

PROFESSOR SUZANNE FITZPATRICK AND MR NICHOLAS PLEACE

26 OCTOBER 2004

  Q1 Chairman: Can I welcome everyone to the first session of the Committee's inquiry into homelessness. Before I turn to the witnesses can I just draw to everybody's attention the fact that the written evidence we have received so far is now available from the Stationery Office at some large price which I cannot quite find at the moment—£20.50—which does not seem to me to be very good value for money. It is available, but much cheaper of course, on the House of Commons web site. So if you want to find out what other people have said there is your opportunity to go and look at it. May I express the Committee's gratefulness to all those people who have put in evidence. May I ask the two of you to introduce yourselves for the record please.

Professor Fitzpatrick: I am Suzanne Fitzpatrick, Director of the Centre for Housing Policy at the University of York.

  Mr Pleace: Nicholas Pleace, Senior Research Fellow at the CHP at the University of York.

  Q2 Chairman: Looking at the faces of people at the back no-one could hear that so could you speak up. I am afraid the acoustics in this room are not very good. The devices in front of you do not help the people in the room. I think they may help the broadcast but they do not help them, so if you could speak up that would be helpful. Do you want to say anything by way of introduction or are you happy to go straight into questions?

  Professor Fitzpatrick: We are happy to go straight to questions.

  Chairman: Right. Bill O'Brien?

  Q3 Mr O'Brien: Could I put it to you that the underlying causes of homelessness is an issue that gives rise to concern in many areas and you point out that the headline figure for homelessness—local authority acceptances—is at a record high and the trend has been upward for a long time. Aside from housing supply, what are the main factors underlying this rising demand in terms of demographics, changing social patterns and so on?

  Professor Fitzpatrick: The upward trend is actually fairly recent in that in the pattern in homelessness acceptances in England there was a very rapid rise in the late 1980s/early 1990s, then there was a drop in the 1990s and it slowly started to rise again since around 1997. I think in terms of long-term upward rises in homelessness they have been going on since the early 1980s through a combination of factors. The increase of poverty and unemployment, particularly in the late 1980s, was very closely linked with the rises in homelessness and the evolving restructuring of family relationships. We know that relationship breakdown, both for women and particularly for young people, is very closely associated with homelessness. In terms of the very recent rise since about 1997 onwards, it looks like housing market factors are most important in terms of the trend upwards, although not necessarily in terms of the overall causes of homelessness because the rate of homelessness was already running quite high.

  Q4 Mr O'Brien: When you refer to increase in poverty what evidence do you have on that? What kind of poverty are you referring to, economic poverty or other factors?

  Professor Fitzpatrick: To give you perhaps the clearest example, there was a very, very strong relationship between the rapid rise in youth homelessness in the late 1980s and the changes in the Social Security Act 1986 which made it more difficult for young people to gain access to Income Support and for 16 and 17-year-olds it caused severe hardship. That is a clear example where a particular economic change, a social security change has a demonstrable impact on homelessness, and from research I have done myself with young people that was very clear.

  Q5 Mr O'Brien: What about people in employment, do we see poverty in that sector?

  Professor Fitzpatrick: From the evidence we do have of homeless households, which is not complete and that is something we might go on to talk about the need for greater evidence, it suggests quite strongly that the great majority of homeless households in recent years have been unemployed and that is across single homeless households and families. There will be some families in particular where there is someone in employment but on most occasions the research evidence, such as it is tells, us that they are unemployed. That was not the case, as far as we know, in the 1960s and 1970s; it has been case, as I say, in the 1980s.

  Q6 Mr O'Brien: In your evidence you say "to what extent is homelessness attributable to housing market failures or to more complex social exclusion dynamics?" You ask that question; have you got the answer to that?

  Mr Pleace: We think it is a combination of factors really. I suppose our central thesis from the research that we have done over the years is that people who are characterised by what is called "social exclusion" or "socio-economic marginalisation" (in terms of exclusion from education when young and not being likely to be in employment and tending to be quite socially and politically marginalised) tend to be the population who are over-represented in the homeless population. Our research evidence I think shows that that section of society which is socio-economically marginalised tends to be the section of society that is affected by wider structural forces such as housing market change or labour market change.

  Q7 Chairman: The number of 16 and 17-year-olds is actually going down, is it not, in the population?

  Professor Fitzpatrick: I think that is right, I am not certain.

  Q8 Chairman: So if you are saying it is an increasing problem that things are actually getting much worse, are they not, for 16 and 17-year-olds?

  Professor Fitzpatrick: I think we do have to refer to the changes that there have been in the legislation which provide priority need status for 16 and 17-year-olds who did not have it previously. The fact that those numbers are going up does not necessarily mean that the number of young people in that age group who are becoming homeless has risen. It may have done but in all likelihood the numbers who are homeless in that age group are becoming more visible in the statistics because they now have priority need status which they did not have before. So I do not think we would take issue on that point.

  Q9 Mr Sanders: In terms of the trends in homelessness we know that acceptances peaked in 1991 and then showed some decline in the early 1990s before they started to rise again. What actually happened in the early 1990s that led to an improvement?

  Professor Fitzpatrick: The numbers peaked in 1991 at an exceptionally high level so what you had there was the impact of what had happened in the late 1980s where, for example, as I said before, the numbers of young homeless people really catapulted from the mid-1980s position. I think what you had after 1991 was something of a plateau-ing effect and then a gentle drop but it was quite a shallow drop and it started to lift again. I think one of the things that happened in the mid-1990s, of course, was the Homeless Act 1996 which restricted homeless persons' entitlements under the homeless legislation. While we cannot be certain, it seems likely that that had some disincentive effect on people coming forward to gain access to housing under the Act because their entitlements were restricted, so I think some of the shallowing out in the mid-1980s was probably attributable to the legislation. Other than that it was a plateau-ing off of what was an extreme increase in late 1980s.

  Q10 Mr Sanders: So would the reverse be true of the current upward trend as a consequence of the more recent Housing Act?

  Professor Fitzpatrick: I am sorry, could you say that again?

  Q11 Mr Sanders: Is the reverse true with the more recent Housing Act that has widened priority groups? Is that now behind the trend in the other direction?

  Professor Fitzpatrick: I had a look at the statistics on this and because the statistics break the priority need groups down into their constituent parts it looks like there is an upward trend not just in relation to the new groups but also the existing priority groups, in other words, homeless families and older vulnerable people, and so on. So while one-third of the increase looks as if it is attributable to new groups, about two-thirds of it is attributable to the existing groups. It looks as if there is an underlying upward trend. Some of it can be attributed to the new priority need groups but not all of it.

  Q12 Mr Sanders: Is that trend continuing or do you think it is now complete?

  Professor Fitzpatrick: It is difficult to say. In the last two or three quarters it looks like it has flattened out but it is difficult to say, I think, without looking at this in the slightly longer run as to whether it is going to plateau out and start to dip or it is just plateau-ing rather than dipping or rising in the last two or three quarters. It has been rising pretty steadily until about a year or so ago and it is still just flattening out.

  Mr Pleace: It is important to bear in mind that acceptances measure one thing, which is approaches to local authorities, and something else is happening as well which is an increase in the use and level of temporary accommodation where there is a steeper upward curve. We have got that pattern as well. The only thing I would add is that in terms of the pattern of acceptances our feeling is that there are quite important regional variations in terms of how that is patterning out in terms of what you see in London compared to cities in the Midlands and the North.

  Q13 Mr Sanders: You often hear that there is regional variation but in the housing market there are more commonalities in similar economic and social entities between regions, for example, rural areas, for example big cities (although there is not necessarily a big city in every region) and for example coastal resorts, and they all exhibit similar characteristics across regions, so when you look at the regional statistics there is this rather greater commonality. I do not know whether you agree that we might be missing something by looking at things in regions?

  Mr Pleace: If you are talking about the North East and South West it is probably too aggregated to see the kind of effects that you are talking about but some recent work we have done for ODPM in a feasibility study on family homes suggests a correlation between the degree of housing stress and the extent of temporary accommodation. You can draw two graphs and if you look at those localities which are characterised by housing stress—this is at the level of individual authorities—then they tend to be areas that have greater use of temporary accommodation. Regional effects is probably not the way to talk about it. It is specific area effects and linked to things like housing markets, labour markets and other local factors which we think alter the pattern of homelessness in terms of small-scale homelessness.

  Q14 Sir Paul Beresford: There is a tendency in this country for university under-graduates to leave home and rent accommodation. They presumably absorb a considerable proportion of university town private accommodation that is available. Is this a factor here perhaps compared to Europe?

  Professor Fitzpatrick: Not as far as I am aware. I do not know of any work which suggests that homelessness is higher in university towns than it is elsewhere. I would not suggest that was the case.

  Q15 Sir Paul Beresford: Commonsense would tell you if you have got tens of thousands of students using accommodation, even five to a house, there would be a housing shortage.

  Professor Fitzpatrick: We need to look at the complexity of causes of homelessness. I do not think it is as straightforward as one particular housing demand group driving homelessness. In so far as housing market factors underline levels of homelessness, it is about the balance between supply and demand, so there are circumstances where supply might respond to that particular demand and in other cases where it might not. I do not think it is necessarily down to any one demand group. Our other central thesis, which I think does have an important regional variation, and which is based on qualitative research that we have done (we are hoping that ODPM will commission a quantitative survey soon which will give us some rigorous statistical information on this) is that the balance of causes of homelessness is likely to differ depending on structural factors. In some cases we believe, based on the work that we have done, housing stress and housing demand pressures of various kinds are particularly important in driving homelessness. London is a key example of that but there are others. However, in other places where there is excess housing and low demand for housing you still have high rates of homelessness. I think an interesting question is why do we still have high levels of homelessness in those areas? In those places there are drivers which include the social dislocations associated with poverty and unemployment and they tend to be driving homelessness. The important thing about that is that it then changes the complexity of the homeless population that you are dealing with and changes what the appropriate interventions should be. That is why we think looking at homelessness within a local context and what the particular drivers are in those cases is so important and in some instances, perhaps, demand from particular groups like students will be particularly important but I cannot say it is a factor that I have particularly come across in the work that I have done.

  Q16 Chairman: You are saying that the problems of homelessness are very different in different parts of the country?

  Professor Fitzpatrick: Yes, that would be our hypothesis.

  Mr Pleace: Very quickly just to restate that and to summarise it, in some areas, for example areas of high housing stress, we would expect a bigger proportion of the homeless population to become homeless simply for economic factors. So for example where housing costs are very high and a household loses one of its wage earners, for whatever reason, it might not then be able to afford to pay the rent and thus become homeless. In areas where there is not the same degree of housing stress it might be that the homeless population is characterised by higher levels of need because in some senses it is harder to become homeless in areas where housing costs are low and where social housing is relatively plentiful. Where households become homeless in that context it might mean that there are factors like support needs and like the kinds of social dislocation that Professor Fitzpatrick is talking about that become more important in those areas.

  Q17 Chairman: Can I take you on to temporary accommodation. In fact the numbers in temporary accommodation have doubled, have they not, in the last six years? Is that going to double again in the next six years?

  Professor Fitzpatrick: I think we would want to be cautious about predictions but one of the things that we have come across in looking at statistics and looking at the associations between levels of homelessness and various indicators of homelessness is a very strong correlation between the numbers of people in temporary accommodation and various indicators of housing stress, particularly affordability problems, so in other words those areas of the country in which housing is in greatest demand and is most difficult to access there is a much stronger relationship with   the numbers of people in temporary accommodation than there is with some of the numbers necessarily coming forward and being accepted as homeless. It looks like the main association between housing stress and homelessness is the difficulty that there is in moving people on from temporary accommodation. Some research that Nicholas has done recently has shown a very close correlation between Professor Steve Wilcox's (with whom we work) indicators of housing affordability and the rates of use of temporary accommodation in various parts of the country. I think that is one indicator which is going to be very strongly associated with housing stress

  Q18 Chairman: So you are suggesting that temporary accommodation is really a measure of housing stress. What is wrong with temporary accommodation in itself?

  Mr Pleace: It depends what kind of temporary accommodation you are talking about. For the most part local authorities use ordinary housing under various arrangements. There are particular problems around some forms of temporary accommodation used in some local authorities. You will all be aware of families being placed in bed and breakfast and recent government actions around that. There are other forms of temporary accommodation which may be inappropriate in terms of location, size, design and the range of amenities that they offer. Thus some hostel accommodation which might be used for some households might be inappropriate. Some areas that are characterised by high housing stress are not necessarily cities, they are rural localities that have relatively few people in temporary accommodation but there are difficulties in moving those households on. You might find that a rural local authority has a homeless hostel which accommodates both single homeless people and is also sometimes used for families, and that accommodation might be inappropriate for a range of reasons because, for example, there might be an undesirable mix of people in terms of the range of needs that they have got if there are children present in that accommodation.

  Q19 Chairman: How much temporary accommodation is poor quality or unsuitable?

  Mr Pleace: It is difficult to say in some respects. There has not been systematic research on that since some work was done by Pat Niner in 1989 which did suggest a range of problems within temporary accommodation. For the most part the temporary accommodation used by local authorities is housing. The degree to which that housing is of an acceptable standard is going to be affected by a range of things. There are issues around size. Quite often groups such as homeless families become homeless with very few resources, so a woman escaping domestic violence with her children might take flight very suddenly which means she has no financial services, she has no furniture, and she has no white goods. Providing her with an unfurnished temporary house might not be a very satisfactory solution but a local authority may be in a position where it is only able to do that and only in time able to equip that house. So it is a function of size, suitability of location, is there somewhere safe for the children to play, is there somewhere safe to let the children out? Is it a safe environment if it is a vulnerable person who has been accepted because they have mental health problems? Is the locality going to affect their well-being? There are all kinds of environmental factors, things around space, things around amenities within the accommodation.


 
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