Watford Borough Council has spent millions buying its own properties to prevent using costly hotels for people facing homeless.
More than £3.6million has been invested buying its own temporary accommodation (TA) and contributing to homes purchased by Watford Housing Association since May 2020.
It comes after the local authority’s net spend on private TA fell from nearly £350k for the last two years to just under £5k since April.
WBC confirmed it has spent nearly £2.2million on six new properties and contributed £1.4million towards 12 homes bought by Watford Community Housing – which itself paid nearly £1.9million.
Though the 12 are owned by the housing association, WBC will retain the nomination rights meaning it can refer tenants to any available homes.
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Stephen Johnson, portfolio holder for property and housing, said many families have been priced out of the housing market and can be left facing homelessness if they cannot afford their rent.
When this happens councils must find TA for them, which previously saw families put in unsettling B&Bs and hotels – sometimes for years.
He continued: “To avoid using costly B&B and hotels, WBC has been investing in its own temporary accommodation, providing families with a decent place to live because having a good home underpins happiness, health and wellbeing and pretty much everything you do in life.
“Owning our own temporary housing stock is also a good long term investment providing value for money to our residents because we are not spending on B&Bs and hotels and we retain the asset value of the property over time.”
In the financial years between 2018 and 2021 the borough council shelled out £874,135 (net) putting people into private temporary accommodation.
It was also reimbursed another £528,068 that was spent via central government housing benefit and resident contributions.
The council’s net spend was £184,655 (18/19), £346,849 (19/20), and £342,631 (20/21), while so far this year it is £4,552.
During 20/21 it put 184 people into temporary housing, with 160 and 163 in the two previous years. So far this year the figure is 80.
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