Agenda item

Report CS16007

The Committee considered a report outlining the activities being undertaken by the Local Authority to sustain an adequate supply of general needs temporary accommodation to meet existing and predicted future demand which was expected to continue to increase.

The Local Authority currently spent more than £4.5m (net) per annum to procure temporary accommodation for homeless households.  This was procured through a mixture of block and spot contract arrangements and delivered through a mix of Housing Association arrangements and private sector leasing for which costs to the Housing Association or Local Authority were recovered through rental income, and through nightly-paid accommodation which was the most expensive option. 

The main contact for provision of temporary accommodation with Orchard and Shipman would expire on 1^st April 2016, with smaller contracts with Dabora Conway and Theori Oak Housing Associations expiring on 1^st April 2017.  The Local Authority would continue to require the accommodation currently leased under these schemes to meet demand, therefore it was proposed that the Local Authority enter into a new contract with Orchard and Shipman for management leasing arrangements for a contract period of three years with an option to extend for a further two years based largely on existing terms of conditions.  It was also proposed to seek a contract extension of three years with Dabora Conway and Theori Oak Housing Associations from 1^st April 2017 with an option to extend for a further two years.  These contracts would include provision to track temporary accommodation subsidy in light of forthcoming changes to benefits.

Extension of the existing arrangements would not be sufficient to meet the level of demand for temporary accommodation, particularly given the declining availability of leased properties.  Therefore the need to acquire additional units, and where possible to avoid costly nightly-paid accommodation had been identified and it was proposed that the Local Authority work in collaboration with the South East London Housing Sub-Region as the Lead Borough to establish a Dynamic Purchasing System for the procurement of both private sector leased and nightly-paid temporary accommodation at Best Value.  This would allow the Local Authority access to a range of providers that had been quality assured and who had submitted indicative prices, and would allow increased flexibility in meeting the changing demand for temporary accommodation.  By working on a sub-regional basis, it was also anticipated that the inflationary impact of competition between boroughs would be reduced in favour of more stable longer term relationships which would slow the upward cost trajectory, and that this would increase supply and maintain access to local accommodation for boroughs across the sub-region.

In considering the report, the Chairman noted the robust processes in place to monitor all contacts for provision of temporary accommodation.

RESOLVED that:

1)  Members’ comments on the current action being taken to reduce the costs and improve the supply of temporary accommodation.

2)  The Council’s Executive be recommended to agree that:

i)  The Housing Division continues the current arrangements with Housing Associations to access temporary accommodation through formal notifications agreements;

ii)  The Housing Division continue to pursue cost effective block contracts for temporary accommodation, both in private sector leasing and nightly-paid accommodation;

iii)  Officers set up a Dynamic Purchasing System developed in collaboration with the South East London Housing Sub-Region with Bromley as the Lead Borough, from which the Housing Division can procure both private sector leased and nightly-paid temporary accommodation, and which all current providers would be expected to sign-up to.

iv)  A new contract be entered into with Orchard and Shipman for a three year period starting 1st April 2016, with the option to extend for a further two years, and Orchard and Shipman would be expected to sign up to the Dynamic Purchasing System as a provider.