A report from the House of Commons Public Accounts Committee has found homelessness in England is at record levels.
In its own submission to the Public Accounts Committee, Reapit noted that failure to uprate LHA rates in line with local rental prices means that tenants receiving the LHA face significant affordability gaps, which could lead to arrears, evictions and homelessness.
The report also cited Reapit research which found that 70% of property professionals that had served Section 21 eviction notices had done so due to rent arrears.
By June 2024, about 123,000 households were in temporary accommodation.
Local authorities spent over £1.6bn on this in 2022 to 23, and costs rose to around £2.1bn in 2023 to 24.
According to the committee, authorities were increasingly unable to invest in preventing homelessness, even with funds designated for this.
Temporary accommodation often included bed and breakfast places, where nearly 6,000 households with children were staying by June 2024.
Almost 4,000 of these had been there longer than the six-week limit.
Additionally, 39,000 households were placed in temporary accommodation outside their local area, affecting their ties with schools, work, and community.
The report highlighted that all UK regional administrations have a homelessness strategy, but England does not, despite a recommendation from the committee in 2017.
The committee also expressed doubt that homelessness impacts have been properly considered when setting Local Housing Allowance rates.
Competition for asylum accommodation is said to be complicating the problem, with two government departments driving up local rents.
In December 2024, the Home Office said it was committed to a joint strategy with the Ministry of Housing, Communities and Local Government (MHCLG).
The MHCLG aims to produce a strategy and associated metrics in 2025 and plans a housing strategy to deliver 1.5 million new homes.
This comes amid concerns about the lack of affordable housing.
Supported housing is mentioned as a potential solution for homelessness but suffers from inadequate oversight.
The Supported Housing (Regulatory Oversight) Act was enacted in August 2023, but the MHCLG has made no progress in its implementation.
Dr Neil Cobbold (pictured), commercial director at Reapit, said: “We welcome the Public Accounts Committee’s report, and the evidence we’ve provided shows just how critical it is for the industry to engage with policymakers on this and other pressing issues.
“Having access to the relevant data can shine a light on the realities in the PRS that should drive change, such as the fact that arrears are far more likely to be the reason for a Section 21 eviction, and not ulterior motives, as some suspect.
Cobbold added: “It’s crucial that the industry continues to work with government to drive meaningful change.
“Without significant court reforms to reduce delays in eviction cases, we feel the current Renters’ Rights Bill will make the affordability situation for tenants worse, as landlords appear to be selling in reaction to the legislation, leaving tenants with less choice and higher rents.
He said: “What we really need is a joined-up strategy across government departments to stabilise the PRS.
“This includes credible court reforms to restore landlord confidence, measures to bring vacant properties back into use, and ensuring housing benefit calculations reflect real-time rent prices.
“Without these changes, tenants across the UK will continue to struggle with rising rents due to housing shortages, and landlords will shoulder increased risk from being unable to recover properties when necessary.”
