Derby City Council is set to review proposals for a new private sector leasing scheme aimed at reducing reliance on temporary accommodation. The initiative would allow the council to lease up to 50 privately owned 2- and 3-bedroom properties for periods of one to five years, or for more than ten years. Longer-term leases enable the council to claim the full housing benefit subsidy, lowering costs associated with providing temporary accommodation.
Costs for temporary housing have risen sharply, from £0.6 million in 2022/23 to an estimated £8.1 million in 2024/25. The proposed leasing scheme is designed to provide more stable, secure, and private accommodation for households in need while mitigating these financial pressures. The council may expand the scheme beyond 50 properties if demand increases.
As of 30 September 2024, 8,030 households were actively seeking affordable housing via the council’s Homefinder system. The council has also invested in developments such as Abbey Lodge, which offers secure flats to meet local housing needs.
Implementation of the scheme would require approval of a £150,000 capital budget and a one-off revenue allocation of £200,000 in the 2026/27 Medium Term Financial Plan. Landlord engagement will form a key part of the rollout, with property owners given the opportunity to participate under clearly defined terms.
The initiative aligns with national trends, as other local authorities have used private leasing arrangements to provide quality accommodation, reduce costs, and support households with greater stability.
