14 January 2003
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The London Borough of Brent has saved more than £500,000 by moving families out of bed and breakfast and into private rented accommodation under a groundbreaking private insurance policy launched by Let Plan, a member of the Erinaceous Group.
Two other London boroughs – Islington and Lambeth - have also taken up the initiative and are making considerable savings, and another three London boroughs, including the City of Westminster, are considering implementing the policy.
The policy, which is operated in partnership with local authorities, provides private landlords with a guarantee against non-payment of rent, contents damage and any legal expenses that might arise should a tenant default on a tenancy agreement.
The partnering initiative is in line with the Government’s commitment to move homeless people on benefit out of bed and breakfast and into more permanent accommodation.
A pilot scheme was run in partnership with the London Borough of Brent, which helped to cut the number of its families in bed and breakfast accommodation by 100 to 600.
The innovative approach has gained Brent Council and Let Plan the outstanding achievement in social housing award presented at the UK Housing Awards and sponsored by the Deputy Prime Minister’s Office.
Michael Arnold, a director of Let Plan, said: “It can cost a council up to £6,000 a year to keep a family in bed and breakfast but, by paying a typical £500 first year’s premium, the council can save up to £5,500 a year per family.
“Besides the obvious financial benefits, the scheme helps to fight against homelessness. At the same time, closer ties between local authorities and private landlords encourage good practice in the letting, management and maintenance of rented property.”
For further information, please contact:
Paul Desmond / Marylene Guernier
Tavistock Communications Ltd
Tel 020 7600 2288
