Capital's homeless B&B bill soars above £2m

THE bill for housing Edinburgh's homeless in bed and breakfast accommodation has soared to more than £2 million.

Council officials said the cost of using B&Bs as an emergency form of housing had gone up by £300,000 in the past year.

It follows the release of the council's homelessness strategy, which showed that the Capital's chronic shortage of affordable housing is creating the growing number of homeless people. This, coupled with a dwindling supply of council houses which can be used to provide short-term accommodation, has been blamed for the rising costs.

And the city is now set to look at using more homes through private landlords, in order to cut the reliance on bed and breakfasts.

At any one time it is estimated that 200 people in Edinburgh are being housed in B&Bs around the city, despite the fact that they are only used as a short-term last resort.

The council's homelessness strategy stressed the need to make greater use of the private rented market, and Paul Edie, the city's housing leader, admitted it would be the way forward, as the cost of using B&Bs was too high.

"The housing shortage means it is inevitable we will be using more private sector landlords in future," he said.

"B&B accommodation is only used for people with no children who are homeless and we are developing alternatives to this. "Despite this we can have up to 200 people in B&Bs at any one time, costing the council in excess of £2 million a year.

"Our priority is to house people who are homeless as quickly as possible, and private sector leasing is helping to meet people's needs at a crucial time in their lives."

Two years ago the city struck a deal with Orchard and Shipman to find 1500 private sector homes which could be used as accommodation for homeless people.

The company recently announced it had secured its 1000th home in the agreement, which gives landlords a guaranteed long-term income from housing benefit, and a guarantee that the property will be returned in good condition.

Andrew Morrison, Orchard and Shipman's director of policy and business development, said the private sector could contribute to huge savings across the whole country.

"As Scotland faces the historic challenge of ending homelessness by 2012 - an ambition that puts us at the forefront of homeless strategies in Europe - it's clear private sector leasing could play a major role," he said.

"Increased, but prudential, use of the private sector would see those in the greatest need offered access to accommodation that presents a real home at a significantly reduced cost."

Mike Penny, the city council's manager in charge of homelessness services, added: "Private sector leasing allows us to help people get a home in a sector of the market which has been difficult for them before. At any one time there are ten times as many private sector properties to let as there are council homes available."