Nottingham City Council has unveiled a strategy aimed at addressing the surging demand for emergency accommodation for homeless families in the city.
It is a challenge intensified by a national rise in homelessness and local economic strains.
The council’s decision to invest £6,461,560 towards establishing a flexible framework for the procurement of privately owned short-term rental accommodation marks a significant shift from its reliance on expensive hotel accommodations, which has been both financially unsustainable and unsuitable for families in need.
Since 2017, Nottingham City Council has increased the amount of temporary accommodation available for homeless families from under 100 units to over 500 units and plans are progressing to deliver a number of additional temporary accommodation projects under the most cost-effective financial models i.e. under leasing arrangements and/or delivered as exempt supported accommodation.
However, the earliest any currently proposed additional arrangements will be mobilised is in 2025/26 and even with the increased provision supply has not matched demand, leading to a reliance on use of hotels.
In the past year alone, the council spent an alarming £5.36 million on hotel accommodations to meet its statutory homelessness duties, housing over 143 families in facilities lacking essential living and cooking amenities.
The report highlights the situation, with over 650 families currently placed in temporary accommodations and an average of 120 new applications for assistance received weekly.
The financial strain is further evidenced by the council overspending on its temporary accommodation budget by approximately £2.761 million in the 2023/24 period.
The new approach is expected to not only enhance the quality of living for vulnerable families but also yield considerable financial savings.
Initial estimates project a minimum of £116,000 in savings for 2024/25, with further reductions anticipated in the following year as the council implements broader strategies to reduce the dependency on emergency accommodations. In total the plans should save £750,000.
The flexible framework initiative is designed to broaden the market for emergency accommodation services, ensuring competitive pricing and quality assurance while complying with procurement regulations.
This move is poised to offer more suitable and dignified living conditions for families, aligning with the council’s broader objectives of homelessness prevention and the delivery of value-for-money services to its constituents.
By transitioning to a model that leverages the efficiency of the private rental market, Nottingham City Council is aiming for cost-effective solutions to one of the most pressing social issues of our time. The decision underscores the council’s commitment to not just meeting its legal obligations but also to improving the well-being of its most vulnerable citizens through strategic planning and responsible fiscal management.
The proposal will be discussed at the Commissioning and Procurement Executive Committee meeting on 12 March.
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