Select Committee on Public Accounts Thirteenth Report


1  Understanding the causes of homelessness

1. Levels of homelessness are influenced by a variety of factors including the state of the economy, social and personal factors including family and relationship breakdown and levels of supply of affordable housing. When the Committee of Public Accounts last examined homelessness, in 1991, it called for better research on homelessness to inform national policy development.[2] Fourteen years on the need for better quantitative data on the levels, patterns and causes of homelessness is just as great.[3]

2. Official statistics on statutory homelessness are derived from forms filled in by local authorities. They are designed to monitor local authority decisions and actions under the homelessness legislation, rather than to provide information on homeless households. Reliable information is held only on those who approach local authorities for help and who are accepted as being unintentionally homeless and in priority need. Priority need groups include households with children, those who are vulnerable as a result of age, disability or poor health, and people fleeing violence - the "statutorily homeless".

3. ODPM publish a measure each quarter of the "flow" of new cases of households accepted by local authorities as statutorily homeless. These statistics show that almost 128,000 households were accepted during 2004.[4] (Figure 1). This figure is slightly lower than the total for 2003, although it is still higher than in previous years, and around 25% higher than the figure for 1997.

Figure 1 : Number of statutorily homeless households 1997-2004


Source: National Audit Office and ODPM

4. Local authorities record the two most recent or pressing causes of homelessness of those they accept as statutorily homeless such as parents no longer being willing to provide accommodation or the break-down of relationships. But this data may not reflect the underlying causes of homelessness. For many people homelessness is a one-off event. But others can find themselves in a cycle of social or financial difficulty which leaves them without a settled home on several occasions.[5]

5. The official data is also problematic in explaining the underlying causes of changes in patterns of homelessness. The homelessness legislation and the way it is implemented by different local authorities can have an impact. For example, the North East and Yorkshire and Humber region experienced one of the highest percentage increases in homelessness acceptances in recent years, nearly doubling between 1999 and 2003.[6] One of the factors that ODPM considered might account for this rise was the greater capacity of local authorities in these regions to take on responsibility for housing vulnerable 16 and 17 year olds following their addition to the priority needs categories in 2002.[7]

6. Local authorities can only assess a person's housing status and take the necessary action if that person approaches them for assistance. They do not need to house those who are not in priority need. Many homeless seek help from the voluntary and community sector. Others stay where they are or go to stay with family and friends. The Barker Review of Housing Supply estimated there were some 154,000 households in stop gap accommodation, i.e. staying with friends and families.[8] ODPM told us there were no reliable data on the "hidden homeless". [9]

7. Homelessness is inevitably influenced by the availability of housing and affordable housing in particular. Some 19% of England's 20 million households live in social housing.[10] The Barker Review of Housing Supply noted that the number of houses for social rent built in the United Kingdom fell from around 42,700 per year in 1994-95 to around 21,000 in 2002-03.[11] Availability has also been affected by the sale of social rented property, which has accelerated quite markedly over the last three or four years. ODPM considered that around 22,000 potential re-lettings of social housing units would be removed each year if annual Right-to-Buy sales remained in the region of 70-75,000.[12]

8. The Barker Review of Housing Supply noted that whilst there had been a considerable increase in spending on social housing (from £800 million in 2001-02 to over £1.4 billion in 2003-04) rising land prices and the need to improve existing stock meant that the rate of new supply had continued to decline. It had concluded that the number of new social and affordable homes would have to rise by at least 17,000 per year in order just to meet the flow of new needy households.[13]

9. The 2004 Spending Review provided for an increase in expenditure expected to deliver an extra 10,000 social rented homes by 2007-08. Further expenditure over the next three years is expected to lead to the building of 75,000 new social housing units and 40,000 subsidised low cost homes, as part of a wider programme of measures to meet new and existing housing need, including delivering 1.1 million new homes in the wider South East by 2016.[14]

10. Delays have been encountered in delivering new housing units because of capacity constraints and the need to identify where supply can best be located to meet demand. Increasing social housing provision should be managed in a staged way, in order to balance capacity to deliver with value for money.[15] Pressure on social housing and subsidised affordable housing is likely to continue at least into the medium term.

11. One of the impacts of the shortage of affordable housing especially in London and the South East has been the use of temporary accommodation to house those in priority need whilst they wait for the local authority to find them a settled home. The number of households in temporary accommodation increased by almost two and a half times between 1997 and 2004 - from around 40,000 to over 100,000. The use of temporary accommodation is heavily concentrated in regions that experience high levels of general housing demand. London and the South East regions, for example, account for almost 75% of all households in temporary accommodation.[16]

12. ODPM's five-year plan "Sustainable Communities: Homes for All" includes the aim of halving the number of households in insecure temporary accommodation by 2010. But many local authorities have entered into long-term leasing arrangements with private sector landlords for temporary accommodation as part of the drive to move families out of Bed and Breakfast accommodation. If such arrangements are non-negotiable, local authorities will find it more difficult to make significant moves away from the use of temporary accommodation.[17]

13. In an increasing number of areas, local authority housing departments retain strategic responsibility for meeting housing need but social housing is provided and managed by Registered Social Landlords (housing associations) or Arm's Length Management Organisations. Some authorities told the National Audit Office that such bodies at times refuse to provide settled homes to homeless households.[18] ODPM needs to establish how widespread this problem is.


2   22nd Report from the Committee of Public Accounts, Homelessness (HC 477, Session 1990-91) Back

3   C&AG's Report, para 32 Back

4   Ev 17 Back

5   C&AG's Report, paras 1.12-1.13 Back

6   ibid, para 1.16 Back

7   Qq 38-39; Ev 16-17 Back

8   C&AG's Report, Figure 7 Back

9   Qq 56, 72 Back

10   C&AG's Report, para 10 Back

11   ibid, para 1.5 Back

12   Ev 19 Back

13   C&AG's Report, para 1.7 Back

14   Ev 19 Back

15   ibid Back

16   C&AG's Report, Figures 11-12 Back

17   Q 7 Back

18   C&AG's Report, paras 3.28-3.30 Back


 
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