Office for Value for Money (OVfM): procuring short-term residential accommodation
Published 19 June 2025
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This publication is available at https://www.gov.uk/government/publications/value-for-money-vfm-study-on-the-procurement-of-short-term-residential-accommodation/office-for-value-for-money-ovfm-procuring-short-term-residential-accommodation
The Office for Value for Money (OVfM) has conducted a study into the planning and procurement of short-term residential accommodation by the public sector, working in partnership with relevant departments and engaging with local government bodies, charities, investment experts and housing associations.
The study concludes that short termism and competition between different parts of the public sector has pushed up prices, and the lack of coordination and integration has worsened outcomes and has led to inefficient use of existing capacity. The number of people in short-term residential accommodation has risen significantly over recent years, and costs have risen even more.
The OVfM has developed principles for a future approach to procuring short-term residential accommodation: moving towards greater local delivery to support integration and outcomes, with national planning and coordination to support a longer-term approach, underpinned by new procurement models and measures to support required capacity.
Moving to this future approach would be complex and take time. Central government is working with local government to test new locally-led models. Relevant government departments will work together to build the evidence base and support implementation through:
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Working in partnership with local government to determine how to move towards greater involvement by local areas in the provision of accommodation and wraparound services.
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Using the evaluation from pilots that are testing greater involvement by local areas in providing accommodation.
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Exploring new financing models to support the supply of accommodation.
The outputs of this study were published as part of UK Infrastructure: A 10 Year Strategy on 19 June 2025