Welsh council to buy HMO style properties as cost of temporary accommodation soars

Lewis Smith – Local Democracy Reporter

A Welsh council has agreed to purchase three new properties that will be used as houses in multiple occupation.

The move came at a Bridgend Council cabinet meeting on Tuesday (September 24), where members heard a report on the authority’s position when it came to housing and homelessness in the borough.

Officers outlined the challenges they currently face, with large increases reported in applications for the common housing register rising from 816 in 2019-20 to 3,254 by the end of August 2024.

They also reported a “stark” rise in the costs of temporary accommodation, an increase of 3,665% between 2019-20 and 2023-24, leaving the council expecting to spend over £3.2million on temporary accommodation in the 2024-25 financial year.

However, a plan had been put in place to help tackle this increase in price with the council approving a proposal in March to buy housing in multiple occupation style properties, to provide their own temporary accommodation that would be more cost effective.

Savings

The latest report highlighted how costs for properties owned by the council would be in the region of £25 per day per unit, whilst the price of alternatives are on average around 70% higher, with the authority already having purchased two of the properties with a third purchase currently in progress.

The report read: “It is proposed that, to achieve further savings, this model could be scaled up and also considered for family type properties. As such, cabinet are asked to approve the purchase of a further three properties, to be utilised for the purpose of providing temporary accommodation.

“It is estimated that purchase costs will be in the region of £250,000 to £350,000 per property. The capital funding for these purchases will be provided via S106 funding.”

Speaking at the meeting, deputy leader of the council Jane Gebbie said the plans gave her a hope that there was a sustainable way forward for the service, that lowered the “astronomical” costs of temporary accommodation from over £34,000 a year for one resident in homelessness provision to around £9,000.