New Report: No Access, No Way Out
Research Outline
No Access, No Way Out captures the emotional story facing tens of thousands in the UK.
It is told through first-hand evidence of the people living and working at homeless services across the country in the context of an ever-worsening housing crisis, and a broken system that is entrapping them with no work, no home, and no hope.
Background
The report focuses on the impact of the lack of available move-on options in the private rented sector for people experiencing homelessness.
The private rented sector has become an increasingly important route out of homelessness and the typical move-on destination for someone ready to progress from supported living. However, the current housing landscape means this is no longer a reality.
In conversation with our project partners, Commonweal was alerted to the difficulties they were having in placing clients into the PRS. To shine a light on the issue, Commonweal commissioned independent researcher Becky Rice to investigate the impacts rent increases were having on single homeless services move-on access from the third and public sectors.
The report focuses on individuals not considered to be in "priority need" and are therefore limited in their entitlements to local authority support with housing. Typically, this group relies on benefits to pay for their housing, with no savings for a deposit or rent in advance.
Through interviews with frontline homelessness organisations supporting people into PRS homes and individuals currently experiencing homelessness and seeking PRS accommodation, the report tells a clear story of a system under severe strain and in need of urgent intervention.
The small-scale study focused on London, but included interviews with organisations in Greater Manchester, the West Midlands, Kent and Sussex.
Key findings summary
An inaccessible, unaffordable market
Securing PRS accommodation for people moving on from homelessness has become much more difficult in the last two years, resulting in people experiencing homelessness for longer. This reduced availability, particularly in the lower-priced end of the PRS market, is due to landlords who previously focused on renting to people on benefits shifting to a different section of the market.
Alongside falling supply of low-cost PRS, soaring rent prices and lack of financial resources to cover deposits and advance rent payments leaves people leaving homelessness excluded from the rental market.
“So, I think that it’s been getting worse and worse gradually. It’s just hit a particularly shocking point in the last year or two because I think the demand has increased so significantly.” Anonymous
Systemic worklessness traps
The high costs of PRS accommodation means that people are trapped in worklessness because foregoing the housing element of Universal Credit payments, or legacy housing benefit payments, to work on a low and potentially variable income makes rent unaffordable. This creates a cycle of poverty, as people find it difficult to afford rent when transitioning into work.
Adding to the unemployment trap are growing cases of landlords preferring to rent to non-employed tenants, as they receive a guaranteed income through the tenant's benefit payments.
“If you go for a job, it’s gonna completely change your move-on plan, and things that are affordable.’ And he was like, ‘Oh, gosh, I thought by getting a job it was a good thing.’ […] It’s just heartbreaking. People want to work. Often, people want to work because they need routine. You have purpose, but you’re sort of discouraging that.” Service Manager, St Mungo’s
Feelings of desperation and hopelessness
For individuals seeking move-on from homelessness services, the experience of living in services for long periods with no access to move-on private rented housing creates a feeling of desperation and hopelessness. In some cases, this leads to clients abandoning the services and at risk of rough sleeping. Low-quality offers and experiences of rejection people experience when seeking PRS accommodation can also be retraumatising, causing people to feel hopeless.
“One client who had definitely been on [many, many] viewings, he’s abandoned [the service]. I think that’s the worst situation because they might end up rough sleeping again, and then keep going around services.” - Anonymous service and support organisation
Competition for viewings
Mass viewings were reported to be a major problem for people seeking a PRS route out of homelessness. Not only do mass viewings create a negative experience for people who do not secure the accommodation, but they also give agents the opportunity to select tenants based on discriminative and subjective grounds.
“I took video evidence because it was a one-bed studio flat on the North Circular. I recorded it to show the rat race we have to deal with, about 45 people in the queue. People give each other wrong directions to increase their chances – I’ve seen that happen.” – Senior Manager at Depaul UK.
Increased use of landlord incentives
To address the increasing demand for PRS accommodation, landlords are increasingly being encouraged to accommodate people experiencing homelessness through cash incentives rather than rent deposits and/or rent in advance. This situation has created a competitive dynamic between homelessness agencies and local authorities.
As a result, some homelessness agencies may be disadvantaged if they do not provide incentives or offer only small ones, as local authorities often have greater resources to offer. However, the level of support provided by different local authorities varies widely, ranging from substantial incentives to no support for individuals who are not considered to be in priority need.
“If we had to pay a thousand pounds for every person we placed there’s no way we could place 150 people – that’s £150,000 worth of incentives that we’d have to fundraise for. That’s not feasible for most charities.” Senior Manager, The Passage
Unethical and illegal landlord practices
Cases of alarming landlord practices were rife in both client and staff of services interviewees, including concerns about racial profiling and discrimination, including asking for tenants with fluent English. Other concerning practices involved expecting clients on disability benefits to pay a higher level of rent and requesting tenants’ Universal Credit logins to set up direct payments.
“There’s also more shady stuff; we’re seeing ... agencies demanding [Universal Credit] logins before they will give over a key.” Anonymous
Key recommendations
Most importantly, the report looks to the future by recommending ways to improve access to the PRS through joint-working between different organisations:
Recommendations for Ministry of Housing, Communities and Local Government (MHCLG)
- Ensure that the new Renters’ Rights Bill is robust enough to increase the rights of those who are accessing the cheapest end of the market including those who have experienced homelessness.
- The Bill must deliver a more secure PRS, a stronger approach on the enforcement on poor conditions and illegal practices, and an end to discrimination by agents and landlords when advertising for and selecting new tenants, for all renters even those who are most disadvantaged in the market.
- Address the imbalance between supported options in ‘exempt accommodation’ and more affordable, fully independent options for people with lower support needs.
- Work with HM Treasury to explore new mechanisms for incentivising landlords, delivered through the tax system, which move the burden away from local authorities providing cash offers at the point of tenancy sign-ups.
Recommendations for metro mayors and local authorities
- Boost the capacity of floating support for people in PRS accommodation.
- Promote partnership work to prevent further escalation and variation in incentives offered to secure PRS access for people experiencing homelessness.
Recommendations for homelessness organisations
- Expand innovative projects that provide a low-rent option with light-touch support for people who do not need traditional support models but are unable to access PRS independently.
- Continue and expand work to support clients to access the PRS in a holistic way with local authority and grant funding.
- Work together to convey the reality of the lower-cost end of the PRS to decision-makers, including commissioners and politicians.
- There is currently extensive coverage around conditions in social housing and temporary accommodation, representing an opportunity to shine a light on the realities of the PRS such as illegal practices, and poor quality, value and experience.
Find full list of recommendations in Chapter 12 of the report here >
Open letter to Angela Rayner, Secretary of State at MHCLG
Commonweal, on behalf of 26 housing sector organisations, sent an open letter to Angela Rayner, the Secretary of State at the Ministry of Housing, Communities & Local Government (MHCLG). The letter calls for urgent action to improve and enable move-on from homelessness services in to the Private Rented Sector (PRS) for single people, based on the report's recommendations.
A copy of the letter can be found below. If you would like to add your organisation to the online version of the letter, please email LaurenA@commonweal.org.uk with the name and role of the person you'd like to add.
If you wish to find out more about this report or get in touch, please email info@commonweal.org.uk
Subscribe to our newsletter
Keep up to date with our latest projects and news by subscribing to our newsletter.
Thanks for subscribing! Please check your email for further instructions.