Nearly £40m spent on temporary accommodation by Luton Borough Council since 2021
New figures have revealed how many people are living in temporary accommodation in Luton, and how much the council is spending to house them.
The council defended its spending saying that the town is experiencing “unprecedently high levels“ of demand for accommodation help and that the UK has a “very serious housing crisis”.
Temporary accommodation is for people who are homeless or at risk of becoming homeless, and is provided by local authorities while they work to find a more permanent solution.
A new investigation has revealed that over 600 households were living in temporary accommodation in Luton over the past year, costing the council over £15m.
Figures obtained by Personal Injury Claims UK found that, in 2023/24, 602 households were living in temporary accommodation in Luton.
The data comes in light of the news that, across the UK, the number of homeless people in local authority-provided TA rose to record levels.
In 2023, about 109,000 households in England – including 142,000 children – were in emergency housing between June and September, up 10 on the same period the previous year.
Back in 2021/22, the number of households in TA in Luton stood at 459, with a possible cause for this being the ongoing cost-of-living crisis forcing people to find other, cheaper places to live.
A year later, this number increased to 691, which is the highest number of people living in TA in the past three years.
Over the past year, the area has seen a drop in the number of TA residents, with the number standing at 602.
Personal Injury Claims UK also obtained figures on the cost of temporary accommodation to councils and housing authorities in the past three years.
Since 2021, £39,652,546 has been spent on temporary accommodation – in 2021/22, it cost Luton Borough Council £10,948,208 before this figure increased to £12,836,184 a year later. The cost of TA then jumped up to £15,868,154 in 2023/24.
A spokesperson for Luton Borough Council said: “Since 2021, £39,652,546 has been spent on temporary accommodation in Luton; this total is the council’s actual payments to private landlords and agents to provide temporary accommodation. This does not include employee costs or other overheads, and excludes any income from rent charged to tenants.
“The UK has a very serious housing crisis, and due to a number of varying factors, Luton is experiencing the full brunt of this with demand for council assistance at unprecedently high levels.”
The council spokesperson explained that the number of families approaching the council for support, which has risen from an average of 200 per month to 600 per month, “resulting in an overspend as our teams do their best to help residents in need”.
They continued: “Rising rents during a cost of living crisis is contributing to more families facing homelessness as a result of the high number of tenancies terminating. This is exacerbated by the Local Housing Allowance, which falls short of actual rents in the town. Other factors include that Luton appears to be a frequent choice for other boroughs when relocating people in housing need, thus reducing housing options for local people.
"We are currently restricted in our ability to deliver more social housing due to our tightly-bound borough and limited development space.”
When councils run out of immediate space in specific temporary accommodation premises, other types of places are used to house people like hotels and bed and breakfasts (B&Bs). The short-term rental market, such as Airbnb, has reduced the number of properties that councils can use.
The spokesperson added: “Despite this we are doing everything we can to prevent families becoming homeless, and where temporary accommodation is required, we ensure that it is safe and meets statutory guidance. While we understand that living in temporary accommodation can be disconcerting, it does ensure that no families are ever forced to sleep rough in our town.
“We continue to collaborate with stakeholders across the town to tackle issues such as debt and unemployment, which can contribute to financial hardship for families. We also work with landlords to help families stay in their homes and avoid evictions. We have also recently signed a joint statement urging Government to help turn things around.”