Bridgend Council in Wales has decided to acquire three new properties to be used as houses in multiple occupation (HMO). The decision was made during a council cabinet meeting on September 24, where a report was presented outlining the authority’s approach to housing and homelessness in the borough.
Council officers highlighted the challenges they are currently facing, with a significant surge in applications for the common housing register, which rose from 816 in 2019-20 to 3,254 by August 2024. Additionally, there has been a substantial increase in the costs of temporary accommodation, soaring by 3,665% between 2019-20 and 2023-24. It is anticipated that the council will spend over £3.2 million on temporary accommodation in the 2024-25 financial year.
To address these escalating costs, the council had previously approved a plan in March to purchase HMO-style properties as a more cost-effective solution for temporary accommodation. The latest report detailed that the daily costs for properties owned by the council would be approximately £25 per unit, significantly lower than the average alternative costs, which are around 70% higher. The council has already acquired two properties and is in the process of purchasing a third.
Deputy leader of the council, Jane Gebbie, expressed optimism about the plan, emphasising the potential for significant cost savings. The proposal aims to reduce the expenses of temporary accommodation substantially, from over £34,000 a year per resident in homelessness provision to about £9,000.
During the meeting, the cabinet members unanimously approved the plan to purchase three additional properties for temporary accommodation. However, they acknowledged the potential risks associated with fluctuations in the housing market and ongoing maintenance costs.
The move by Bridgend Council to invest in acquiring HMO properties aligns with their strategy to address the pressing housing challenges and soaring costs of temporary accommodation in the borough. This innovative approach is seen as a sustainable solution that could lead to substantial financial benefits for the council while ensuring adequate housing provision for those in need.