Homeless May Be Given Houses Rented From Private Landlords

Up to 200 properties may be leased from private landlords to counter a “chronic shortage” of temporary council accommodation for homeless people in Perth and Kinross.

Members of the local authority’s housing and community care committee are also expected to back radical plans to spend up to £1.2 million buying ten privately owned homes to help ease the crisis.

A report has revealed that a lack of suitable accommodation for homeless people left the council’s general fund budget with a deficit of almost £350,000 last year.

Dave Roberts, the council’s executive director of housing and community care, has warned that immediate action is needed to address the spiralling cost of dealing with homelessness. He states in his report: “High levels of demand for temporary accommodation are a consequence of the level of homeless applications and a chronic shortage of available social rented housing locally.

“Usage of bed and breakfast accommodation as an option is not cost-efficient for the council and neither does it provide appropriate accommodation for homeless applicants. Early action is required to obtain additional temporary accommodation to supplement the pool already built up but which brings into play additional property from outwith the existing social rented sector.”

Mr Roberts explains that changes to the homelessness legislation have led to additional costs to the council. “Applicants accommodated into bed and breakfast are entitled to receive housing benefit to cover charges, and the homelessness and housing benefit sections have worked proactively to maximise the recovery of charges through housing benefit,” he says.

“Nonetheless, the usage of bed and breakfast is having a detrimental effect on the council’s general fund budget, which arises because the authority does not receive full rebate from the Department of Works and Pensions to cover benefit paid out for bed and breakfast.

“The resulting deficit in 2005-6 was a net cost to the authority of £343,383. To remedy the deficit situation and to seek to meet our statutory duties now and in the future, the council requires to take immediate action to increase the supply of temporary accommodation.

“The private-sector leasing (PSL) scheme in Perth and Kinross, when operational, will have a beneficial effect on the council budgets. It is estimated … that when the PSL scheme is up to full capacity, there will be a full-year saving in excess of £400,000 per annum.”

Councillor Gordon Hunter, the committee’s convener, backed the call for action. He said: “The impact of homeless legislation is considerable. Perth and Kinross Council and all its councillors believe that the target of eradication of homelessness by 2012 is laudable. However, it has put our stock and our tenants under strain.

“That said, the council will do everything it possibly can to work towards that target. We have a duty to do our best to resource suitable temporary accommodation wherever we can and these proposals will help. These plans are not a cure-all, but we will keep looking for solutions rather than dwelling on the problems.”