Inside Housing – Home – Council rules on debt see more than 3,500 households ‘trapped’ in temporary accommodation

News24.10.24by Jenny MessengerThousands of homeless households are unable to move out of temporary accommodation because of council rules on housing debt, according to new research.Picture: AlamySharelinesCouncil rules on debt see more than 3,500 households ‘trapped’ in temporary accommodation #UKhousing In December 2023 alone, there were 3,797 households in temporary accommodation who had not been rehomed after their housing-related debt meant they were ruled ineligible or less of a priority, researchers from King’s College London (KCL) and Oxford Brookes University found.
This figure included more than 1,500 children, as well as domestic violence victims.
The researchers said that the figures are “likely to be a significant underestimate” as several councils did not provide information.
They estimated that the true number of households living in temporary accommodation for debt-related reasons could be more than 10,000.
The government described the findings as “incredibly concerning”. Applicants who are in arrears can become ineligible or are deprioritised in the housing allocation system, depending on the local authority, the researchers said.
This means they can remain “trapped” in temporary accommodation until they can reduce or clear their debt, or prove that they intend to pay.
Katherine Brickell, professor of urban studies at KCL, said: “Labour says it has a ‘moral mission’ to build more social housing, but they also have a moral responsibility to take action on housing allocation rules which are punishing indebted homeless families across the country.
“Households in temporary accommodation are being judged as financial risks as tenants rather than as vulnerable families with children who need housing. The human costs of these rules are simply too high to justify.”
The researchers have called for a review into the impact of these rules as well as wider scrutiny of them, pointing out that debt is a key reason people become homeless and often worsens after that.
They also noted the “immediate and long-term detrimental physical and mental health impacts” of temporary accommodation.
“At a minimum the rules need review; and councils and central government need to be able to monitor who is being impacted by the very policies they have designed,” said Dr Mel Nowicki, reader in urban geography at Oxford Brookes University.
“At the absolute bare minimum, victims of domestic abuse should be explicitly excluded from housing-related debt rules.” New analysis from the researchers has shown that of the housing allocation policies of the 294 English councils, excluding county councils, 88% have an ineligibility policy linked to housing-related debt and 54% have a deprioritisation policy linked to housing-related debt. 
They also found that while 94% of council policies mention domestic abuse in their housing allocation policies, only 17% specifically exempt victims from housing-related debt rules.
Households in London are bearing the brunt of the debt ineligibility rules, with 79% of ineligible households in temporary accommodation living in a London borough.
A spokesperson for the Ministry of Housing, Communities and Local Government said: “These findings are incredibly concerning – we know families are facing a tough financial situation right now and we urge councils to be reasonable when making difficult allocation decisions.
“Ultimately we know a safe and secure home is vital in giving families the stability they need. We will take these findings on board and consider them as part of our plans make sure everyone gets access to the support they need.”
A report released by the KCL and Oxford Brookes researchers a year ago also highlighted the issue of the so-called “debt trap”.
This week, new analysis showed that London boroughs are now spending an average of £4m per day on temporary accommodation.
Earlier this year, unpaid rent to housing associations hit a record high of just under £800m, according to the English regulator’s annual entity account published late last year. Sign up for our homelessness bulletin



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