Council loses 156 landlord properties for homeless housing

A London council says it lost 156 private sector homes being used for temporary accommodation last year due to landlords reclaiming their properties.

It says this is down to landlords exiting the market or wanting their properties back to leave the council increasingly reliant on expensive nightly paid accommodation.

Between November 2023 and November 2024, the council’s use of private landlord properties fell from 854 to 698 – 131 of those lost were landlords requesting their homes be returned which is, the report states, a ‘significant increase’.

The report to Lewisham Council’s housing committee states: “Both the economic downturn in the last few years and the changing housing market are resulting in an increasing percentage of private landlords choosing to increase their rent in line with market prices or choosing to no longer rent out their properties resulting in them disposing of the properties altogether.”

Impacted the council’s budget

This trend has impacted the council’s budget, with nightly paid accommodation identified as the ‘main driver contributing to our £12.9million forecasted overspend on temporary accommodation’.

The council currently has 2,826 households in temporary accommodation, with 1,481 residing in nightly paid accommodation, a substantial increase from 745 in April 2021.

Lewisham says it faces numerous challenges in procuring new properties to house those in need.

Its ‘procurement strategy’, which aims to secure 200 leased units by March 2025, has only delivered 49 properties to date.

The report acknowledged these struggles, stating: “Whilst procurement of temporary accommodation and private rented sector accommodation has been steadily increasing, it should be noted that this has been very challenging.”

Impact of the Renters’ Rights Bill

The report also highlights the impact of the Renters’ Rights Bill and states: “In the short term, the Bill is likely to introduce some volatility into the rental market and may reduce the supply of properties to rent as landlords could become more risk-averse about which tenants they will accept, and some leave the market entirely.”

The council also points to the benefit cap, which limits the maximum benefits some households can receive, which poses a barrier to moving on from temporary accommodation.

The council is implementing various measures to address these challenges, including a moves to prevent homelessness and re-settling households from temporary accommodation in the PRS.

However, the report acknowledges the broader context of the London housing market, pointing to research that reveals a big decline in the supply of private rented accommodation due to landlords selling properties to owner-occupiers.