Northampton council wants to borrow £50m to help buy homes for homeless people

Northampton Borough Council wants to borrow £50 million to help buy homes to reduce homelessness and the dependency on costly temporary accommodation.

Cabinet members are expected to approve the plan to acquire 30 one-bedroom homes and six five-bedroom houses in multiple occupation (HMOs) for current and former rough sleepers tomorrow (Wednesday, August 19).

In September, councillors will be asked to support the extra borrowing to boost the housing revenue account, which has been used to buy homes as part of a pilot since last year.

"This option is recommended because it increases the council’s housing stock, extends the range and type of homes that may be acquired and helps the council to reduce the use and cost of temporary accommodation and meet the housing needs of rough sleepers," a report ahead of tomorrow's meeting says.

High levels of homelessness and the lack of suitable housing available has resulted in an increase in the number of households in temporary accommodation, according to the report.

But this can be expensive - for example a three-bed home costs the council an estimated £112 per week, £485 per month and £5,824 a year.

Currently the local authority has 134 families in a two-bed home, 53 in a three-bed and seven in a four-bed, which costs around £17,917 a week, £77,537 a month and £931,164 a year.

Since June 2019, the local authority has been buying former council homes to address the 'urgent' need to reduce the number of families living in temporary accommodation, according to director of housing and wellbeing Phil Harris.

The local authority started by purchasing 24 properties, managed by Northampton Partnership Homes and let to the households that have spent longest in temporary accommodation.

Following the pilot, the council has asked Homes England and the government to provide it with sufficient capital funding to purchase the additional homes.

The £50 million borrowing will fund a number of schemes, including continuing to purchase more ex-council homes and bigger schemes if they arise, a council spokesman said.

Meanwhile, the council forecasts it has overspent by £1.434 million, with £1.767 million in car park income lost because of the coronavirus pandemic but government grants are expected to offset that.