Shelter warns families living in fear of eviction as new campaign video released
7 months ago | 24 comments
Shelter claims private providers are profiting from temporary accommodation crisis as costs soar
12:01 AM, 22nd September 2025, 7 months ago
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Shelter has accused private providers of “cashing in” on the temporary accommodation crisis, as councils spend billions of pounds to house the homeless.
According to government figures, local councils spent a total of £2.8 billion on temporary accommodation for 2024/25 to accommodate households who are homeless, a 25% increase in one year.
The housing charity is calling for the government to “end the housing crisis for good” rather than offering “temporary solutions.”
£844 million, was spent on emergency B&Bs and hostels
According to the figures, the total amount councils spent on temporary accommodation has more than doubled (118% increase) in the last five years.
One third of the total, £844 million, was spent on emergency B&Bs and hostels, while the other 40% of the total, over £1 billion, was spent on nightly-paid, self-contained accommodation.
Mairi MacRae, director of campaigns and policy at Shelter, claims accommodation run by private providers is the most expensive and can have families living in rooms as cramped as B&Bs.
Shelter does not provide a definition of private providers, but the term mainly refers to private property management companies that run hotels, though it could also include private landlords if councils rent directly from them.
Private providers are cashing in on this crisis
Ms MacRae said: “While the housing emergency is draining billions in public funds, families across the country are paying the ultimate price. Money that should be helping them into a secure home is instead shelled out on grim temporary accommodation, just to keep people off the streets.
“There’s nowhere near enough social homes and as a result homelessness has reached record levels, with thousands of desperate families showing up to their council’s doorstep for help.
“Private providers are cashing in on this crisis, charging eyewatering sums for rooms where children are forced to eat, sleep and do their homework on beds shared with siblings.”
Ms MacRae claims the only solution is to deliver 90,000 social homes a year for ten years.
She adds: “We can’t afford to ignore the need for genuinely affordable social homes, the only solution to the housing emergency. The government needs to ramp up to 90,000 a year by setting a clear overall target for the delivery of social rent homes.”
Tags:
B&Bs, councils spending, homelessness, Hostels, private providers, Shelter, social housing, temporary accommodation
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Member Since September 2018 - Comments: 3504 - Articles: 5
11:12 AM, 22nd September 2025, About 7 months ago
hahahah
The private sector is only ACCUSED of ‘cashing in’ because there is not enough social provision! Guess what – demand but no state supply means by default you have only the private sector to look to help from.
The irony is the PRS has no issue with the state providing more social accommodation – just get on and build it. The last thing any LL in the PRS wants to be is made to house those that the state should be responsible for.
The PRS provides a CHOICE for tenants, not the government housing mop up service.
Member Since December 2015 - Comments: 292
11:20 AM, 22nd September 2025, About 7 months ago
And shelter demonisation and constant attack on landlords has helped remaining landlords cash in on temporary accommodation as several have sold up and left the sector. br />
Well done muppets!
Member Since June 2019 - Comments: 761
12:31 PM, 22nd September 2025, About 7 months ago
Amongst the guilty you will find Serco near the top of that list – yep the same organisation that is running border ‘security’ bussing in thousands.
Member Since June 2015 - Comments: 330
12:57 PM, 22nd September 2025, About 7 months ago
If Social rents were financially viable far more Social Housing could be provided. Why should tax payers subsidise Social rents when people living in Social Housing can be earning double the national average salary?
If LHA matched the 30th percentile rent (which it was originally supposed to do) far more landlords would let to low income tenants. A lot of UC claimants are decent people doing essential jobs. As landlords we are often squeamish about the fact the LHA element of UC is woefully inadequate and we don’t want our tenants to be living in poverty. If they’re not our tenants we don’t have to think about this. Minimum wage, UC and LHA are things we have no control over.
Surely sorting out these 2 issues would save huge amounts of money on temporary housing.
The other things that would help would be removing the SDLT surcharge on any property that is going to be used a a primary residence. Whether it’s owner occupied or tenanted shouldn’t matter.
Also abolishing Section 24 would help make rents more affordable.
Member Since May 2015 - Comments: 2187 - Articles: 2
1:14 PM, 22nd September 2025, About 7 months ago
Local Authorities are already begging the PRS to house benefit tenants, when we do, we are “stealing from the public purse” when we don’t we are discriminating. I do not intend to benefit from public funds, but to conform with the forthcoming RRA I will have to allow all publically funded tenants to apply, none of whom will be financially able to rent one of my properties.
Member Since September 2018 - Comments: 3504 - Articles: 5
2:42 PM, 22nd September 2025, About 7 months ago
Reply to the comment left by TheMaluka at 22/09/2025 – 13:14
A PRS LL does not benefit from public funds.
A private TA by default means the obligation to pay the rent falls to the tenant. The tenant has to provide evidence that the rent is affordable from their income.
Income is either earned through T’s own labour or provided to THEM by the state on the basis of THEIR claim and government award.
T chooses PRS accommodation.
The state determines what public funds it releases to T to give them this option.