Agenda item

Cabinet considered proposals for accelerated temporary accommodation provision for the district. This item, alongside the general housing acquisition programme, was probably the most important item ever presented to Cabinet by the Portfolio Holder for Housing. Cabinet wanted to bring home those local residents who had been placed in temporary accommodation outside the district. There currently were 303 households in temporary accommodation, both due to long term central underfunding of social housing and local pressures relating to gentrification and rent inflation. A hundred and fifty seven of these households were placed outside Thanet, due to the unavailability of rental properties within Thanet.

Households that were placed out of the local area existed under extreme pressure. They risk losing jobs, school places, support networks, and known health professionals. They incurred extra expenses and suffered isolation and worsening of mental health at a time when their mental health was already under extreme strain due to becoming homeless. Cabinet had made active efforts to reduce these pressures, including working to make provision for funding for transport back to school places and jobs through the Household Support Fund. However, these efforts could not fully address the key issue. Cabinet was therefore asked through these proposals to approve the purchase of 170 homes for temporary accommodation, for the explicit purpose of bringing home households who were currently placed out of the local area, and to keep households in Thanet in the future. This was a plan that was huge in significance and scope; but it was also another project that continued the Council’s tradition in Housing of creating a virtuous circle, where both social and financial needs were addressed.

The social, emotional, and financial strain for Thanet residents of being placed outside Thanet is enormous. It was damaging for families and individuals, places strain on education placements and the management of health conditions, and this is why the Portfolio Holder for Housing had long argued for investment in in-house, local temporary accommodation. This was a priority for the current Cabinet before the incumbents became the administration. Cabinet was now in a position to ensure that the Council provided this level of support for residents, and grow the in-house provision, to ensure social and financial stability.

The costs of out of area and external placements were financial as well as social, as demonstrated by the fact that an investment of this scale would stand to save £114,000 in the first year alone, with over £1,000,000 per year saved by year ten. In 2023/24, the council's general fund incurred a £1.2 million net overspend due to the costs of temporary accommodation. Predicting the 2024/25 net overspend was challenging due to the fact that the need for temporary accommodation was based on demand but was currently predicted to exceed the £800,000. Temporary accommodation is not delivered within the Housing Revenue Account, and as such the costs for it come directly from our General Fund, which had an impact on the delivery of other Council services.

Through continuing acquisition, the Council already had 32 units of local in house temporary accommodation across Thanet, as well as 41 Porchlight units that the Council funded specifically for Thanet residents. Cabinet knew that taking this approach would improve outcomes for residents and create significant financial savings. This will reduce temporary accommodation costs in future years as a result of borrowing costs being fixed, whereas the cost of using third party, temporary accommodation providers would likely rise. People from Thanet need to be able to stay in Thanet. Creating temporary accommodation that ensures that people facing homelessness can stay in the district is vital to them being able to maintain work, school and family connections at a time when they’re most needed. This approach embodied Cabinet’s ambitious and innovative approach to addressing housing need. Cabinet was proud of the work done by the Housing and Finance Departments. Cabinet was also proud of what had been delivered for residents by the District Council.

Cabinet was asked to:

1. Firstly, progress with a programme to acquire or develop up to 170 homes for use as temporary accommodation. 
2. Secondly, that Cabinet recommend the required general fund capital budget of £38.762m as part of the annual budget setting process across the financial years 2025/26 and 2026/27 to deliver this.
3. Thirdly, that a six monthly update on the delivery of the programme be provided to Cabinet.
4. And that finally, the letting of these homes be in accordance with the Council’s Temporary Accommodation Policy, approved by Cabinet in July 2024.

This was, without doubt, one of the most significant and meaningful choices that could ever be made by Cabinet. Councillors from across the different political groups as well as those on the Overview and Scrutiny Panel had already expressed their support for what had been a huge piece of work for both Housing and Finance.

Councillor Bayford spoke under Council Procedure Rule 20.1.

Councillor Whitehead proposed, Councillor Keen seconded and Cabinet agreed the following, that:

1.  The Council progresses with a programme to acquire or develop up to 170 homes for use as temporary accommodation;

2.  Cabinet recommend to Full Council, the required general fund capital budget of £38.762m as part of the annual budget setting process across the financial years 2025/26 and 2026/27;

3.  A 6 monthly update on the delivery of the programme is provided to Cabinet;

5.  Letting of these homes will be in accordance with the Council’s Temporary Accommodation Policy, approved by Cabinet in July 2024.