UK (Parliament Politics Magazine) – Local authorities in England have spent millions to move homeless families out of big cities to less expensive regions, while critics also raised concerns.
As reported by The Guardian, an investigation shows that local councils in London, Birmingham, and several other authorities in the south-east have allocated over £5.2m to companies helping in the relocation of unhoused families to cheaper areas since 2020.
The firms secure affordable housing where rents match the local housing allowance (LHA), but, as rents rise faster than LHA in many areas, these properties are often located in smaller, poorer regions in the Midlands and North of England.
People who are moved by these firms are placed into private rental homes and seen as permanently rehoused, cutting their ties with the original council and making it nearly hard for them to come back.
In London, local authorities sometimes give families just 24 hours to agree to a new home in a different location, with the threat of being kicked out from temporary housing if they reject the offer.
Experts have raised worries about “racialised, coercive displacement,” also arguing that people of colour are being moved to predominantly white areas.
MPs in the north-east pointed out the lack of support for those placed in already struggling locations.
Reloc8 UK is among the firms hired by councils to help in relocations, having received at least £3m from councils in London and Birmingham since 2020 and it has received more than £600,000 from Enfield Council since last August.
The use of these companies has grown each year, with payments from councils sharply increasing in 2023 and 2024 as homelessness in England rose. Last year alone, 30% of the £5.2m total has been spent.
Reloc8 UK stated it has secured homes in London and Birmingham over the years, stating that “there are times when certain areas are more prevalent due to availability, affordability for tenants and many other factors.”
It also refrained from discussing specific council policies, but it highlighted that many families voluntarily used its services.
Since 2020, London local authorities have spent almost £4.8 million on these companies, with Waltham Forest Council contributing more than £900,000 to Reloc8 UK.
The practice of moving homeless families, many from ethnic minority backgrounds, into predominantly white towns in England, has become a source of tension.
The CEO of the Runnymede Trust, Dr Shabna Begum stated,
“We know that people of colour are much more likely to experience homelessness and are therefore more exposed to this practice of enforced displacement out of our cities.”
She added, “We are talking about working-class communities of colour being forced to move out of areas which they know as home – to areas where many have reported feeling isolated, vulnerable and exposed to racism.”
Local councils are urging yearly increases to LHA costs, arguing it would help tackle increasing homelessness and lower the need for relocations. Meanwhile, the government has decided to freeze the rates until 2026.
Durham County Council has raised worries about not being informed of London’s homeless relocations to the region.
The MP for the City of Durham, Mary Kelly Foy said,
“It’s beyond belief that managing agents are making money from what appears to be little more than social cleansing. “
She added,
“It’s shameful that no additional support is being provided to the communities in which they are being placed, often already battling extreme poverty and deprivation.”
Social housing in England has reduced by more than 250,000 over the last 10 years. A Savills study revealed that just 5% of London homes align with LHA, while the NAO reported record homelessness. London councils spend £4m daily on temporary housing.
Birmingham City Council stated that Reloc8 and another company helped 27 families find houses, ensuring all move outside the city with their consent.