Opinion

How Greedy Landlords Are Fuelling a Homelessness Crisis

When it comes to homelessness, sleeping rough in a shop doorway is just the start of the problem.
How Greedy Landlords Are Fuelling a Homelessness Crisis
Homeless people find warmth at St. Mary the Virgin Church in Manhattan on a bitterly cold day in New York City on Feb. 13, 2015. Spencer Platt/Getty Images
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When it comes to homelessness, sleeping rough in a shop doorway is just the start of the problem. From young people living with parents because of unaffordable rents, families sleeping in homeless hostels, or couples teetering on the edge of mortgage arrears, many of the homeless are hidden from sight.

However, rough sleeping figures in London are on the rise. In the 2010, rough sleeper count 415 people were noted as sleeping rough in the capital. In 2014, that number was 742—an increase of 44 percent in the space of four years.

Like rough sleepers, the number of households in temporary accommodation has also been increasing. More than 50,000 households were living in temporary accommodation in London at the end of 2015, an increase from 45,810 on the previous year, and a massive leap from the 35,830 in 2011.

But while the number of households living in temporary accommodation is on the up, the number in “bed and breakfast” (B&B)—a type of accommodation for travelers—is going down. This is primarily because of a change in regulation which means the maximum amount of time a family can live in a B&B for is six weeks.

On the face of it, a decrease in families living in B&Bs long-term sounds like a good thing. But it’s how the private rented market has responded to this regulation that is really causing problems.

Home Truths

The problems start with the way temporary accommodation is paid for. It sits in a complex and shady corner of the housing benefit regulations, where different rules apply.

Local authorities receive a special housing benefit subsidy directly from the government for people in temporary accommodation. This includes a weekly benefit payment based on the “normal” housing benefit plus a management subsidy of 40 pounds (about $58) a week, to contribute to the local authority’s costs in managing that tenancy.

Julie Rugg
Julie Rugg
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