Policy paper

Housing conditions in temporary accommodation: government response to the Housing, Communities and Local Government Committee report (accessible version)

Published 22 June 2026

Applies to England

1. The government welcomes the Housing, Communities and Local Government Committee’s inquiry into ‘Housing Conditions in Temporary Accommodation’, published on 22 April 2026. We are grateful to all those who provided evidence and are keen to continue to work with the sector and the Committee on their recommendations in a collective effort to tackle this important and complex agenda.

2. This government inherited a broken system, with record numbers of people experiencing homelessness, including record numbers of families trying to raise their children in the worst and most dangerous accommodation, such as bed and breakfast. The APPG for Households in Temporary Accommodation’s recently published report on child mortality data sheds light on those most devastating outcomes.

3. The government’s National Plan to End Homelessness (published December 2025) sets out commitments to improve the quality of accommodation provided to homeless households and strengthen the protections they have against poor conditions. This includes a new national target to eliminate the unlawful use of bed & breakfast accommodation for families along with plans to apply the new Decent Homes Standard to temporary accommodation, and Awaab’s Law to temporary accommodation let under a tenancy in the PRS (as well as consulting on its potential wider application to temporary accommodation occupied under licence). We also set out immediate action we are taking across government on commitments to improve the experience for people living in temporary accommodation on standards, schooling, healthcare and out-of-area placements. Delivering these strategy commitments is key to preventing these worst outcomes caused by poor-quality accommodation and gaps in wider service provision.

4. First and foremost, we must continue to prioritise eliminating the use of B&B accommodation where essential facilities, such as kitchens and/or bathrooms, are shared. The increased risks around safeguarding where this sort of shared accommodation is used, and particularly where local authorities do not have control of the accommodation and families may be sharing accommodation with individuals with complex needs, are unacceptable. That is why we set a national target to eliminate this, other than for very short-term use in emergencies.

5. The Committee have highlighted the need to prioritise eliminating use of B&B accommodation that is unlawful by the end of the Parliament, and their report acknowledges that government and councils have made good progress at reducing the number of families living in B&B accommodation longer than 6 weeks. The latest quarterly statistics (September – December 2025) continue to show significant progress in reducing the number of families and children in bed and breakfast accommodation beyond the 6-week limit, as well as families in bed and breakfast overall (both down 60% from the same time last year).

6. We are providing support to councils and public services to shift from crisis to prevention through £3.6 billion funding for homelessness and rough sleeping services over the next three years, including £969 million funding for temporary accommodation. The latest statistics also show progress on our commitment to increase prevention outcomes and encouraging early signs of stabilisation for overall numbers in temporary accommodation, which fell for the first quarter since 2022. The progress we are making is having a real impact on children’s lives.

7. However, we must not move families out of B&B into other poor-quality alternatives. We will use our expanded £30 million Emergency Accommodation Reduction Programme to address a range of poor practice. In year 1, the vast majority of the £10 million funding will be targeted on B&B use, as with the successful Pilots 25/26. Alongside this focus on B&B, we will test approaches to improve quality more widely. We will look to expand this in the second and third year of funding, to have the strongest positive impact on children in temporary accommodation.

8. As committed in the strategy, the department and Ministers have been working with stakeholders to identify what other forms of temporary accommodation or practice pose the greatest risks to the wellbeing and safety of children, and how we can monitor and how we can tackle them. Many of these are reflected in the report’s recommendations, and this is a key contribution to building the evidence base on these issues.

9. In the strategy we set out plans to provide frameworks, guidance and support through new toolkits to support authorities, and those they work, with to plan, assess and deliver services with greater consistency and confidence. The toolkits will offer a range of examples, evidence and good practice on design and delivery of homelessness services, to help us towards our goal of ending homelessness. In May we published the first toolkit on Local Performance and Accountability to support local authorities in developing effective Homelessness Strategies, Action Plans and targets. The toolkit includes information on key requirements, including how Action Plans must include a policy for ensuring suitability of temporary accommodation.

10. Since we published the strategy, we have also reached Royal Assent on two Bills that will bring landmark improvements for households. The Renters’ Rights Act has reformed the private rented sector by banning Section 21 evictions and improving security for tenants, which will play an important role in reducing the risk of homelessness. The Children’s Wellbeing and Schools Act will strengthen councils’ statutory duties to better support care leavers and prevent homelessness and introduce a single unique identifier for children nationally to help improve information sharing and safeguarding. The Act will also introduce a new duty on local housing authorities to notify health and education bodies when a child is placed in temporary accommodation, to improve partnership working and unlock appropriate support.

11. As part of government’s Better Futures Fund, which will support up to 200,000 struggling children, young people and their families delivering place-based solutions to complex social problems across England, we will look to improve outcomes for youth and family homelessness.

12. As part of UK Research and Innovation’s Research and Development Missions Accelerator Programme, UKRI are investing up to £6 million in a funding opportunity on ‘Improving Outcomes for Children Experiencing Homelessness’. This is for a range of organisations to develop, adapt, or further validate innovative approaches that improve educational outcomes and wider wellbeing for children and families experiencing homelessness

13. As the report sets out, there is a risk that interventions to raise standards can adversely impact the supply of temporary accommodation. That is why our National Plan to End Homelessness set out a package of interventions to deliver our long-term reforms to reduce the demand for temporary accommodation, while focusing on stamping out the worst forms of temporary accommodation and supporting councils to develop better alternatives. We are helping councils invest in good-quality temporary accommodation through delivery of the £950 million fourth round of the Local Authority Housing Fund and through exploring options for partnerships with social impact and institutional investors.

14. To tackle the root causes of homelessness and reduce the number of families in temporary accommodation, we must build more homes. We have confirmed a new 10-year £39 billion Social and Affordable Homes Programme to kickstart social and affordable housebuilding at scale across the country. The core strategic objective of this new programme will be to maximise supply – particularly of Social Rent homes, with a target to deliver at least 60% of the homes under the programme as Social Rent. This objective ensures we are prioritising delivery of the most affordable homes to help hard working families and lift children out of poverty and homelessness.

15. The government response to the specific Committee’s recommendations is set out below.

Response to the Housing, Communities and Local Government Committee recommendations for government

This section sets out the government’s response to the recommendations contained within the Committee’s report.

The prevalence and severity of poor conditions in temporary accommodation

Recommendation 1: We recommend that the Ministry of Housing, Communities and Local Government use the English Housing Survey to routinely collect and publish national data on the quality of all types of temporary accommodation from 2027/28 onwards.

Government response:

16. We agree with the need to continue to build our understanding of quality across types of temporary accommodation in order to address problems and ensure value for money.

17. We are investigating options to improve the information we collect on the quality of temporary accommodation, building on existing data collections including the English Housing Survey. We will write to the Committee in autumn to update them on this work.

Hazards and disrepair

Recommendation 2: We recommend that the government set interim targets for the proportion of temporary accommodation that is upgraded to comply with the new Decent Homes Standard before the final implementation date in 2035. These should align with interim targets set for the wider private rented sector.

Government response:

18. When securing accommodation under homelessness legislation, housing authorities should already ensure that all accommodation is free of health and safety hazards at the most dangerous ‘category 1’ level, assessed using the Housing Health and Safety Rating System (HHSRS).

19. The current Decent Homes Standard (DHS) already applies to temporary accommodation and supported housing with a social landlord. Through the Renters’ Rights Act 2025 the Decent Homes Standard will be applied to the private rented sector for the first time. In January, government published its response to its consultation on a reformed Decent Homes Standard for social housing, and its extension to privately rented homes. As we set out in our National Plan to End Homelessness, the government’s intention is to apply the reformed Decent Homes Standard to temporary accommodation wherever possible.

20. The reformed Decent Homes Standard will set out what tenants should be able to expect from their home and make clear the obligations for landlords to provide a home that is safe and warm.

21. It is our intention that the new Decent Homes Standard will drive a long-term improvement in housing quality and we expect landlords in each tenure (including temporary accommodation) to begin taking action now to ensure their properties meet the reformed Decent Homes Standard and other new requirements before the implementation date of 2035, in a similar fashion to the introduction of the original Decent Homes Standard in 2001. We will engage with the sector to ensure the Decent Homes Standard can be applied across different temporary accommodation settings. The Regulator of Social Housing is also developing its approach to seeking assurance from landlords that they are appropriately preparing for the reformed Decent Homes Standard.

22. A detailed evaluation plan will be developed over the coming years to help monitor and evaluate the adoption and implementation of the reformed Decent Homes Standard as it is introduced across different settings. We will publish guidance for landlords about implementing the Decent Homes Standard by the end of 2026.

23. For temporary accommodation in the social housing sector, we have also committed to work with the National Housing Federation, Local Government Association and other sector bodies to agree a compact that, once agreed will be overseen by a taskforce comprising representatives from a range of sector organisations and interests. At the heart of the compact will be ambitious social and affordable housebuilding commitments, evidencing how the grant funding support and regulatory certainty and stability that this government has provided has translated into ambitious delivery plans and bids into the Social and Affordable Homes Programme (SAHP) from housing associations, councils and other Registered Providers. It will also be premised on strengthened joint governance and accountability mechanisms, with oversight provided by regular reporting back to the department.

Recommendation 3: The government must require local authorities to carry out mandatory inspections before properties are first used as temporary accommodation, ahead of new households moving in and periodically thereafter. As we mentioned in our last report, the government should provide additional funding, in line with the new burdens doctrine, to local authorities to ensure that they can carry out these inspections.

Government response:

24. As set out in the Homelessness Code of Guidance, housing authorities are obliged under section 3 of the Housing Act 2004, to keep housing conditions in their area under review with a view to identifying any action that may need to be taken by them under the Household Health and Safety Ratings System legislation (HHRSRS). The Code states that, when determining the suitability of accommodation secured under homelessness legislation, housing authorities should, as a minimum, ensure that all accommodation is free of Category 1 hazards which pose the most serious harm.

25. We agree that local authorities must deliver their statutory duty to ensure the suitability of temporary accommodation consistently. Good temporary accommodation management will involve inspections as part of wider assessment of suitability prior to placements, and post-placement keeping a household’s needs under review. The Homelessness Code of Guidance sets out how housing authorities are required to assess whether accommodation is suitable for each household individually, and case records should demonstrate that they have taken the statutory requirements into account in securing the accommodation. This includes statutory requirements on physical quality.

26. We are providing record levels of investment in homelessness and rough sleeping, including over £3.6 billion from 2026/27 to 2028/29 in homelessness and rough sleeping services. Councils can use funding provided through the £2.7 billion Homelessness, Rough Sleeping and Domestic Abuse Grant for inspections and improvement of temporary accommodation.

27. As part of the conditions of this grant, local authorities must produce a policy on how they will ensure temporary accommodation is suitable. The government’s Local Performance and Accountability toolkit sets out best practice guidance and states that the policy should set out how local authorities will ensure suitability requirements are met, including ensuring that quality of accommodation is assessed, and what local oversight is in place to ensure suitability. Action plans are required to be produced by 1 December 2026 – the government will review content to ensure that future policy and guidance supports good practice.

28. Through our Emergency Accommodation Reduction Pilots 2025/26, we funded 35 local authorities with the highest use of B&B accommodation for homeless families to carry out audits of their temporary accommodation stock and use them to consider suitability for the households, including identifying any property issues and broader support needs. More information can be found here: Emergency Accommodation Reduction Pilots. This will inform development of future policy and practice, including through our Temporary Accommodation Toolkit where we will provide good practice guidance on management of placements.

29. We will use our expanded £30 million Emergency Accommodation Reduction Programme to address a range of poor practice. In the first year of funding, we will continue to focus on reducing B&B use for families, whilst also testing approaches to improve quality more widely. We will look to expand this in the second and third year of funding, to have the strongest positive impact on children in temporary accommodation.

30. The Renters’ Rights Act 2025 introduces a new power for local authorities to issue £7,000 fines where a category 1 hazard is found in private rented homes, including temporary accommodation in the private rented sector that is let under an assured tenancy. This new financial penalty is due to come into force by summer 2026 and will provide a strong incentive for landlords to ensure their properties are safe. We are also currently exploring the option using powers in the Renters’ Right Act to expand the scope of this financial penalty to include temporary accommodation occupied under licence in the private rented sector.

Recommendation 4: The government should begin to rollout Awaab’s Law urgently to ensure the regulations are fully applied to temporary accommodation by the end of 2028/29. By then, legal timescales must be in place covering all applicable significant and emergency hazards covered by the Housing, Health and Safety Rating System.

Government response:

31. Awaab’s Law already requires social landlords to fix significant damp and mould hazards and all emergency hazards for properties let under a tenancy. This includes any temporary accommodation in the social rented sector let under a tenancy.

32. We will soon be consulting on extending the scope of Awaab’s Law to the private rented sector as provided for by the Renters’ Rights Act 2025. This would include accommodation let under tenancies in the private rented sector which is used as temporary accommodation. The consultation will also seek views on extending Awaab’s Law to temporary accommodation that is occupied under licence in both the private and social rented sectors. Alongside this, the consultation will invite input on implementation, including the timescales for the rollout.

33. We will consider this recommendation as part of our response to the consultation.

Lack of space

Recommendation 5: The government must require all local authorities funded to carry out local audits to assess, and report on, the suitability of the space provided to households in different types of temporary accommodation and the impact the availability of this space has on children. The government should fund further audits, if necessary, to build its understanding of the prevalence of overcrowding in temporary accommodation and the impact this has on households, especially children. We recommend that the government use the results of these audits to inform a review of the standards used to assess if homes are statutorily overcrowded.

Government response:

34. It is already a requirement for temporary accommodation to be free from the most dangerous health and safety hazards – and this includes overcrowding – assessed using the Housing Health and Safety Rating System (HHSRS). Local councils have strong enforcement powers they can use if they identify health and safety hazards, and housing must be free from these to meet suitability standards, and the Decent Homes Standard (where it applies).

35. We will, however, work with the sector to understand this issue further and ensure that local authority enforcement guidance highlights the need to address overcrowding, whilst also working to increase supply of good quality accommodation in recognition of the constraints that may lead households to be placed in accommodation that does not meet space standards.

36. As set out in our response to earlier recommendations 1 and 3, we will investigate options to improve the information we collect on the quality of temporary accommodation, including overcrowding and hazards, and build on good practice from our Emergency Accommodation Reduction Pilots to strengthen our evidence base on suitability for households, including ensuring that quality issues are identified, and that broader support needs are met. We will use our expanded £30 million Emergency Accommodation Reduction Programme to address a range of poor practice.

Shared facilities

Recommendation 6: The government must ensure that there are effective sanctions in place for local authorities who repeatedly breach the 6-week limit and who are not taking reasonable steps to eliminate their use of B&Bs by the end of the Parliament. The government should publicly name councils who are unwilling to take reasonable steps to eliminate their unlawful use of B&Bs. The government should introduce safeguards to prevent councils from using out-of-area placements or other types of shared accommodation as a way of meeting the government’s national target.

Government response:

37. As the Committee’s report identifies, we are tracking progress against the national target to eliminate the unlawful use of B&B accommodation, by monitoring the number of families that are living in B&B accommodation for longer than 6 weeks. As part of the National Plan to End Homelessness, councils now need to set out how they plan to eliminate use of B&B accommodation that is unlawful and establish local targets for doing so.

38. The number of families placed in B&B for more than 6 weeks by each local authority is already published, and will be a key measure in the Local Outcomes Framework. Through the Plan, we have established routes to escalate, and intervene, to address poor performance and will not shy away from calling out councils, especially if they are not taking adequate steps to improve.

39. However, we are clear that we must not move families out of B&B into other poor-quality alternatives. We will use our expanded £30 million Emergency Accommodation Reduction Programme to address a range of poor practice. In year 1, the vast majority of the £10 million funding will be targeted on B&B use, as with the successful Pilots 25/26. However, alongside this focus on B&B, we will test approaches to improve quality more widely. We will look to expand this in the second and third year of funding, to have the strongest positive impact on children in temporary accommodation.

40. As set out in the National Plan to End Homelessness, councils should, wherever possible, seek to place homeless households within their area, except where there are clear benefits for the person seeking assistance in being housed elsewhere (for example, in cases of domestic abuse). Any placements out of area should seek to minimise disruption, in particular to health services, education and vital support networks. We are aware of instances of poor practice and are actively engaging with stakeholders on how we will address this. We will clarify what is suitable and make expectations on placing and receiving local councils clear.

41. As committed in the strategy, the department and Ministers have been working with stakeholders to identify what other forms of temporary accommodation or practice pose the greatest risks to the wellbeing and safety of children, and how we can monitor and how we can tackle them. Many of these are reflected in the report’s recommendations, and this is a key contribution to building the evidence base on these issues.

Recommendation 7: We reiterate our earlier recommendation that the ministry must amend the definition of B&B accommodation in the Homelessness (Suitability of Accommodation) (England) Order 2003 to restrict the placement of families in other types of accommodation with shared facilities to a maximum of 6 weeks.

Government response:

42. B&B accommodation is not suitable for families and we are determined to eliminate its use for families other than where no other accommodation is available, and then only for a maximum of 6 weeks. B&B accommodation is privately managed, meaning the council has less control over who else the household might be sharing facilities with, increasing safeguarding risks for children – and we believe it is right that this has been our focus.

43. Our latest quarterly statistics published at the end of April show that we are making significant progress on reducing the number of families and children in bed and breakfast accommodation beyond the 6-week limit, as well as families in bed and breakfast overall (both down 60% from the same time last year). However, we are clear these numbers remain too high and we are determined to ensure our target is achieved.

44. Alongside this, we are determined to address other forms of temporary accommodation or practice that pose the greatest risks to the wellbeing and safety of children. The department and Ministers are working with stakeholders to identify these forms, and how we can monitor and how we can tackle them. Government is clear, however, that any accommodation which presents a safeguarding risk is unsuitable.

45. We are aware that some local authorities use their own hostels and assessment hubs within their homelessness housing pathways typically as first placements whilst a family’s circumstances and needs are assessed, and that some of these arrangements include shared facilities. There can be a place for local authority owned or commissioned accommodation with shared facilities for families, provided it is good quality. It can provide the necessary stepping stone for the assessment of needs and provision of support, before moving families into appropriate interim or move on accommodation.

46. As part of our work with stakeholders and providers, we will review the use of socially managed hostel accommodation and consider whether further action is needed alongside our wider work to improve quality in order to reduce or regulate its use and improve practice.

Recommendation 8: The ministry must require councils to report publicly on the length of time households remain in such facilities and justify any decision to keep households in these facilities beyond 6-weeks. By the end of this year, the ministry must publish a clear 10-year plan to phase out the use of accommodation with shared facilities for families with children.

Government response:

47. As set out in the response to Recommendation 6, we are tracking progress against the national target to eliminate B&B accommodation by monitoring the number of families that are living in B&B accommodation for longer than 6 weeks.

48. For the reasons set out in our response to Recommendation 7, we do not currently have evidence that all forms of shared accommodation should be phased out – but we are engaging with stakeholders to identify which forms of shared accommodation lead to poor outcomes.

49. We will ensure HCLIC guidance is clear on the definition of forms of shared accommodation to ensure accurate reporting.

Recommendation 9: The ministry must update the statutory guidance to make clear that placing families in accommodation where they need to share facilities with single male adults is not suitable and should work with councils to bring such placements to an end.

Government response:

50. We agree with the Committee that local authorities must ensure that safeguarding risks are identified and fully mitigated.

51. As set out in our response to Recommendation 7, current legislation and guidance is very clear that B&B accommodation is not suitable for families. We are determined to eliminate its use for families other than where no other accommodation is available, and then only for a maximum of 6 weeks.

52. We are clear that safeguarding risks must be minimised across all forms of accommodation and, where this is not possible, the accommodation should not be used. The Code of Guidance underlines that housing authorities have a duty to safeguard and promote the welfare of children. We will engage with the sector to consider whether we need to amend guidance to ensure it is absolutely clear that placing children in temporary accommodation must minimise safeguarding risks.

Lack of basic facilities and furnishings

Recommendation 10: We recommend that the Secretary of State amend the Homelessness (Suitability of Accommodation) Order 2003 to extend the 6-week limit to accommodation that cannot comply with the new Decent Homes Standard. The 6-week limit should apply from the date that the new standard comes into force in 2035. The ministry also must require local authorities to report publicly when they have suspended enforcement action or applied hazard awareness notices to ensure properties that do not fully comply with the standard remain a last resort.

Government response:

53. The current Decent Homes Standard already applies to temporary accommodation with a social landlord. We will engage with the sector to understand how we can implement the Decent Homes Standard across different types of temporary accommodation.

54. As part of this work, we are reviewing how we can ensure the standard is complied with. At this stage we are not in a position to confirm whether amendment of the Suitability Order is the most suitable route, but we will take this into consideration as we move forward.

Complex needs

Recommendation 11: The government must require local authorities to conduct mandatory inspections before placing households in temporary accommodation to determine that the accommodation they have arranged adequately caters for people’s physical and medical needs. The government should also strengthen the statutory guidance for local authorities on the arrangements that should be put in place to support those with complex needs or who may be more at risk from living in temporary accommodation.

Government response:

55. We recognise that some people have specific needs that must be met for them to recover from homelessness and we expect councils to take all steps to ensure accommodation is suitable for household needs. As set out in our response to recommendation 3, local authorities must deliver their statutory duty to ensure the suitability of temporary accommodation consistently. Good temporary accommodation management will involve inspections as part of wider assessment of suitability prior to placements, and post-placement, will involve keeping a household’s needs under review.

56. We have consolidated homelessness and rough sleeping funding through our £2.7 billion Homelessness, Rough Sleeping and Domestic Abuse Grant to enable councils to act flexibly according to local circumstances and the needs of people experiencing all forms of homelessness in their areas, including those with complex needs.

57. As part of the conditions attached to this grant, this funding can be used to provide supported accommodation for people with complex needs, temporary accommodation inspections and interventions that improve the quality of life in temporary accommodation, such as specialist support services.

58. The Homelessness Code of Guidance notes that proximity to essential support and health services are key to determining the suitability of the accommodation. To support this, local authorities must produce a policy on how they will procure and allocate sufficient temporary accommodation and ensure that it is suitable – including considering proximity to support services.

59. The government’s Local Performance and Accountability toolkit details how temporary accommodation policies should be produced and notes that assessment of demand for temporary accommodation of different types should take into account demand for supported housing, to ensure they provide the range of accommodation needed, including for individuals with complex needs.

60. Supported housing has a particularly important role to play in making sure people can access the right accommodation and support to help them recover from homelessness. To increase the commissioning of vital support services and support the supply and viability of supported housing, we have targeted £159 million at places most affected by homelessness and rough sleeping.

61. For the first time we are requiring all local housing authorities to assess demand for supported housing in their area and to publish this, alongside a plan to deliver accommodation, in a supported housing strategy. We have issued New Burdens funding and guidance to support councils to deliver this new duty.

62. People with complex needs require coordinated support alongside suitable accommodation. To strengthen this, we will review and update the Care Act 2014 statutory guidance, particularly on safeguarding responsibilities for those at risk of homelessness and rough sleeping. Alongside this, we will publish new support guidance to improve legal clarity and support more consistent, joined-up practice across housing, social care and safeguarding services. This will support earlier identification and response where an individual’s needs deteriorate, including for those living in temporary accommodation.

63. Government is taking wider action to support people with the most complex needs, including through funding a £55.8 million second phase of the cross-government Changing Futures programme, working to test innovative approaches and improve how services join up to support people experiencing multiple disadvantage and complex needs. The new phase works in 18 areas, with local partnerships of health, housing, substance misuse, domestic abuse, criminal justice and voluntary sector services.

Recommendation 12: The ministry should require councils to forecast demand for people with complex needs as part of their action plans to highlight where there are gaps in provision and demonstrate how the funds allocated through the Local Authority Housing Fund are being used to fill gaps in available provision. The government must also require local authorities to ensure that all new temporary accommodation built with these funds meets Part M4 (2) of the Building Regulations.

Government response:

64. As set out in our response to Recommendation 11, local authorities should have a policy in place for procuring and allocating sufficient temporary accommodation.

65. Forecasting demand for specialist housing is challenging. However, all local housing authorities are currently developing their supported housing strategies which will forecast demand for supported housing in their area. These plans will be published and significantly improve local and national forecasting for this type of accommodation.

66. We are providing £950 million capital for the fourth round of the Local Authority Housing Fund which is the largest round of the fund to date and will deliver up to 5,000 homes. This investment will provide local authorities with a lasting affordable housing asset. Local authorities have flexibility to deliver homes through a variety of delivery routes to best meet local needs. Within the framework of the purpose and objectives of the fund, we want to provide local authorities with as much flexibility as possible to shape local delivery according to circumstances in each area. Local authorities need to be satisfied that their specific plans are lawful and deliverable.

67. Regarding accessible housing, the government recognises the importance of increasing the supply of housing for older people and those with disabilities, and improving the housing options available. The National Planning Policy Framework (NPPF) requires local authorities to assess the size, type and tenure of housing needed for different groups in the community, including older and disabled people, and reflect this in their planning policies.

68. We recently consulted on a new NPPF, which included proposals for local planning authorities to set requirements for the delivery of M4(2) (accessible and adaptable) and M4(3) (wheelchair user) housing that will meet or exceed their locally assessed need for these types of housing. In relation to M4(2) housing, we proposed a clear national minimum that ensures at least 40% of new housing over the course of the plan period is delivered to M4(2) standards. This approach seeks to formalise best practice, ensure that necessary levels of accessible housing are provided, whilst ensuring authorities have an appropriate degree of flexibility to maximise housebuilding overall. We are currently analysing the responses received and will respond in due course.

Recommendation 13: In response to this report, we request an update on the options the government is considering to increase the supply of good-quality supported housing, as part of the Chief Secretary of the Treasury’s review.

Government response:

69. The government is considering supported housing as part of the Thematic Value for Money Review on homelessness spend that is being led by the Chief Secretary to the Treasury. Cross-government work on the review has begun, and we are engaging with stakeholders to develop cost-effective models.

70. However, we are not waiting for the outcome of the Review to support the supply of good-quality supported housing. We have provided £159 million to support the commissioning of support services in supported housing and to increase the supply of supported housing, including by unlocking the delivery of supported housing through the Social and Affordable Homes Programme where feasible.

71. We have also published guidance for local authorities to work with partners to understand the local landscape of supported housing, including supply, unmet need and future demand, and to develop a local strategy which sets out the direction of travel to increase supply and meet identified need.

72. We will continue to keep the committee updated.

Managing and improving the supply of temporary accommodation

Recommendation 14: We recommend that the Department for Work and Pensions unfreeze the subsidy rates by increasing the rate councils are reimbursed to match the current Local Housing Allowance rate. We also recommend that the government conduct a detailed review of the subsidy rules to ensure they incentivise councils to source good-quality accommodation.

Government response:

73. The Department for Work and Pensions is keeping the levels of Housing Benefit subsidy for temporary accommodation under review, with any future decisions on the levels of Housing Benefit subsidy for temporary accommodation to be taken in the context of the government’s missions (including the child poverty strategy), goals on housing and the fiscal context.

74. We recognise that councils need a stable revenue stream to support innovative finance models, which allows them to lease good-quality properties or to unlock investment in new supply. However, as mentioned in the Child Poverty Strategy, the government is currently spending more on temporary accommodation support than ever before and the quality and standard of housing does not reflect this spending. This includes significant spend through Legacy Housing Benefit, with systems and funding approaches that have not been updated in years. There is an opportunity to improve the value for money that is being spent and improve the outcomes for vulnerable citizens. We are therefore committed to considering the best way to sustainably fund good-quality temporary accommodation and drive down the use of poor-quality temporary accommodation, including new investment products available through the National Housing Bank that may be able to support delivery.

75. In addition, through the Thematic Value for Money Review on Homelessness, we will continue to engage with councils and sector partners to identify the most appropriate ways to balance certainty for councils, value for money, and support for vulnerable people.

Recommendation 15: In response to this report, the ministry should provide us with an update on the work it is undertaking to test locally-led approaches to reduce competition between public bodies and state when, and how, it intends to roll these out more widely.

Government response:

76. Government is working to explore a model of asylum accommodation that achieves value for money and supports asylum system reform.

77. As part of the government’s commitment to close all asylum hotels, we are looking at a range of more appropriate sites, including ex-military sites, so we can reduce the impact on communities. We recognise the challenges in the private rental sector market. Therefore, using crown land to provide additional capacity, especially for single adults initially arriving in the UK will mitigate some of these issues and reduces the risk of homelessness.

Recommendation 16: The government must require local authorities in their action plans to set out how they plan to reduce their reliance on nightly-paid accommodation and provide updates on their progress. The government should also work with local authorities to understand the barriers that are preventing councils from entering longer-term arrangements with landlords.

Government response:

78. We are committed to ensuring that temporary accommodation quality standards are met and that landlords who are providing poor-quality and excessively expensive homes cannot exploit the current crisis.

79. Privately-managed self-contained nightly paid accommodation is now the most common form of temporary accommodation and, while useful and necessary in certain circumstances, is often significantly more expensive and of more variable quality than other options. As part of our work through the Thematic Value for Money Review on homelessness spend that is being led by the Chief Secretary to the Treasury, we are considering what government can do to incentivise local authorities to enter into better value, longer term arrangements.

80. At local level, local authorities are now required by grant conditions to produce a policy for procuring and allocating sufficient temporary accommodation and ensuring it is suitable. The government’s Local Performance and Accountability toolkit details how action plans should include a long-term plan for delivering good-quality temporary accommodation to meet anticipated need and, where necessary, how the local authority will reduce reliance on expensive and on poor-quality temporary accommodation, including through an increased focus on prevention, better use of data, planning and stock management, minimisation of voids and move-on into settled accommodation.

Recommendation 17: We recommend that the government restore the Local Housing Allowance rates to 30th percentile.

Government response:

81. We recognise some private renters need support with their rent. That is why we will work across government to keep Local Housing Allowance rates under review in order to deliver on the government’s priorities, including maintaining the long-term fiscal sustainability of the welfare system. Local Housing Allowance rates were set to the 30th percentile of local market rents from April 2024.

82. For those who need further support, renters facing a shortfall in England can apply for the Crisis Resilience Fund Housing Payment. The Fund provides immediate support to people in crisis, including residents who face shortfalls in meeting their rent or need help with moving costs.

Recommendation 18: The ministry should require local authorities in their action plans to forecast future demand for temporary accommodation locally and set out a 10-year plan for delivering a sustainable supply of good-quality temporary accommodation that is decent, safe and stable.

Government response:

83. As set out in recommendation 16, local authorities should already have a policy in place for procuring and allocating sufficient temporary accommodation, and that this is a core part of ensuring suitability requirements are met. The Local Government and Accountability Toolkit sets out how action plans should be produced and states that these policies should be linked to action plans, and that the policy should include an assessment of anticipated demand for temporary accommodation of different types and a long-term plan for delivering good-quality temporary accommodation to meet that need.

84. We will continue to explore options to support councils to access good-quality temporary accommodation, providing homes for homeless households to reduce the need for expensive B&Bs and other nightly paid accommodation.

85. We are exploring use of existing demand forecast models and working with the sector on this with the aim to share effective approaches to demand forecasting. Recommendation 19: We recommend that the government set out how they plan to prioritise bids for grant funding through the Social and Affordable Homes Programme, including how they will take into account value for money.
Government response:

86. To tackle the root causes of homelessness and reduce the number of families in temporary accommodation, we must build more homes. The government confirmed £39 billion for the Social and Affordable Homes Programme (SAHP), running from 2026 to 2036 at Spending Review. Our ambition is to deliver around 300,000 social and affordable homes over the programme’s lifetime, with at least 60% of homes for Social Rent. This follows £800 million in additional programme funding for the Affordable Homes Programme 2021 to 2026.

87. We recognise that some types of social and affordable homes that are much needed can often cost more to deliver – such as some homes built by local councils and supported housing. The new programme is designed to be flexible to support the greater diversity of supply needed, and we are asking providers to come forward with ambitious bids.

88. Homes England delivers the programme nationally outside of London, and the Greater London Authority (GLA) delivers the programme within London. Both Homes England and the Greater London Authority published full guidance and assessment criteria for the programme - these set out the detail of how they assess bids, including how they assess value for money against all bids. The Greater London Authority guidance can be found here: London Social and Affordable Homes Programme 2026-36 and the Homes England guidance can be found here: Social and Affordable Homes Programme (SAHP) 2026 to 2036.

Recommendation 20: Alongside the first update on the progress of the National Plan to End Homelessness, we recommend that the ministry publish an assessment of the cumulative impact the interventions to raise standards could have on the supply of temporary accommodation.

Government response:

89. We will continue to meet necessary requirements for conducting impact assessments and fulfilling other duties when developing government policies.