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Housing Research 221 - September 1997 At a time when local authorities have reduced their use of bed and breakfast (B&B) as a form of temporary accommodation under the homelessness legislation, many people continue to rely on B&B as a last resort. People who are not helped under the homelessness legislation may find that booking themselves into B&B (self-placement) is the only housing option which remains open to them. Building on her previous research on self-placement in B&B in London, Mary Carter has studied the extent and nature of self-placement in B&B throughout England and Wales. She found:
Extent of self-placement in B&B There are estimated to be 67,665 households, that is 76,680 individuals, self-placed in B&B in England and Wales (see Table 1 below). Self-placement in B&B comes about where people on benefit make their own arrangements to use existing B&B. Use of B&B by those claiming benefit is the result of a gradual decrease in the profit margins of B&B hotels and a reduction in affordable and appropriate housing options for those on low incomes
Self-placement is broadly linked with two types of area: the traditional seaside town where the stock of tourist accommodation is highest; and urban centres which have built up a B&B sector to cater for transient business and employment needs. Self-placement often coincides with areas which have experienced high unemployment as a result of industrial decline or the deterioration of seaside tourism.
The research found that the long-term trend is of a steep reduction in self-placement in B&B. The major cause for the sector's decline is related not to the level of demand for B&B, which remains high, but rather to the gradual reduction in benefits available to pay for B&B. Information about self-placement in B&B B&B does not fall under the same scrutiny, regulation or tenancy agreements as other forms of temporary or emergency housing in the private sector. There is no national standard for defining B&B, nor is there any national system to monitor, license or register this type of accommodation. The relative absence of regulation goes some way to explaining the lack of information both nationally and locally about the level and nature of self-placement in B&B. Demand for B&B The reasons for B&B use are complex and diverse. Perhaps the only common denominator is the user's previous experience of a variety of forms of homelessness provision: no one came to B&B as a first choice. The research found a mismatch between the kinds of accommodation available and what people need or want. In particular, hostel provision has direct links with B&B use for various reasons:
As housing of the last resort, B&B has responded to shifts in the level of need among different client groups. For example, families were the prominent group while councils continued to make heavy use of B&B. But as councils cut their use of the sector, so other groups became more significant within the B&B population. There is a clear relationship between the use of B&B and the presence of additional needs or housing requirements. Although the make-up of the current B&B population is complex, certain groups are over-represented in it. These groups are: people with drug, alcohol or mental health problems, ex-prisoners, care leavers, young people and refugees. Asylum seekers are over-represented among residents in London's B&B. Families are also known to make their own bookings into B&B. Their reasons for doing so fall under the following categories:
Paying for B&B One explanation for continued use of B&B was that B&B landlords' large profit margins have allowed them to absorb some of the difficulties faced by other private renters. However, these profit margins have been gradually eroded and the existence of many establishments is now under threat. Cuts to housing benefit are a key factor in this. The most recent changes to housing benefit include restriction of housing benefit to the 'local reference rent' (compiled by rent officers for different sizes of property, using information on market rents in their area). In B&B properties, however, it may be difficult to identify a market rent, because the majority of residents claim benefit. The cost of B&B varies widely. For example, weekly housing benefit payments for a family can range from £40 to £525, with a median cost of about £78. Shortfalls between the B&B rent asked and the amount of housing benefit being paid were reported by over half of all respondents in the survey of housing benefit departments. The range of shortfalls is extensive, varying from £5 to £10 and reaching £40 to £60, with an average of around £15. The claimant is usually asked to pay this amount from other social security benefit. Since local reference rents were introduced in January 1996 shortfalls in housing benefit have risen, according to all but one of the 59 authorities able to supply figures. But despite these levels of housing benefit shortfalls, the majority of housing benefit departments said they had received no applications for exceptional hardship payments and only 13 said they had made any payments of this kind. The effects of the changes, which to a great extent are only just beginning to be felt, are causing landlords to leave or consider leaving the market altogether, and are threatening to displace a group of people for whom this accommodation was the only remaining option. Care, standards and controls Whilst the well-documented problems of standards in B&B remain, these are eclipsed by the continuing high demand for this accommodation through a lack of alternatives. Some B&Bs are operating without proper insurance due to a reluctance by companies to provide cover and high premiums being requested. A number of landlords expressed concern for vulnerable residents and reported increasing difficulties coping with residents with mental health problems. These landlords were often those who live on the premises. For many landlords, however, the main concern was to maximise income for least input. Existing provisions for supporting B&B residents and inspecting properties rely to a great extent on resident demand. Since many people who self-place in B&B lack security of tenure and are vulnerable to harassment and eviction, they are often reluctant to come forward. Local environmental health officers viewed their powers of enforcement as inadequate, and underlined the point that the system relies to a great extent on residents complaining.
The 1996 Housing Act includes special controls which are intended to curb the proliferation of B&B in order to protect the character of the surrounding area. In two of the case study areas, where there are plans to set up these special controls, no parallel consideration has been given to where displaced residents may go and they are not mentioned in the local housing strategies.
Themes from the case studies Three themes emerged particularly strongly in the information supplied by agencies and individuals in these areas: - Self-placement occurs in all areas, although the characteristics of this may differ. For example, some areas have a greater quantity of commercial provision while in other areas small private lodgings are the predominant form of B&B. - There is a mismatch between the kinds of accommodation available and what people need and want. Where it is difficult for people to obtain private rented accommodation, it may be that the B&B sector rather than hostels fills the gap. - There are high numbers of people in B&B who are without support and are vulnerable. Of particular concern are people with mental health problems who move into B&B in an 'unplanned' way. Other themes include: the reduction in the number of B&B landlords; animosity towards B&B claimants and their landlords; the need for schemes to assist people to obtain other forms of accommodation. Policy implications Provision of a range of more suitable housing options would potentially remove the need for people to resort to B&B. In the short term, however, policies relevant to B&B should address the following key areas:
About the study 225 organisations replied to a general call for information sent out to a range of voluntary and statutory agencies at the start of the research. There were 197 responses to a national survey of housing benefit departments. Six areas were selected for more extensive study and in each of these fieldwork covered a range of statutory and voluntary organisations and individuals. In this research, B&B is defined as all forms of private accommodation with an element of meals. This conforms to the definition used by some but not all housing benefit departments. Further information The full report, The Last Resort: living in bed and breakfast in the 1990s, by Mary Carter, is published by Shelter. It is available from Shelter Publications, 88 Old Street, London EC1V 9HU, Tel. 0171 505 2000. (ISBN 1 870767 56 X, price £8.50 plus 75p postage and packing). |
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