Councils should redirect part of the £2.8 billion spent annually on temporary accommodation into modular homes built on vacant public land, Places for People says.
The housing provider wants to work with local authorities to develop underused sites, including disused car parks, and move families out of expensive hotels and bed-and-breakfast accommodation.
Government figures show 134,210 households, including 176,130 dependent children, were living in temporary accommodation in England at the end of December 2025.
Places for People estimates that moving a household from emergency hotel or B&B accommodation into one of its modular homes could save a council up to £24,540 in rent each year, based on its work in Bristol.
BRISTOL MODEL
Places for People has delivered 20 modular homes for people at risk of homelessness in partnership with Bristol City Council, with further properties approaching completion.
A scheme at Fortfield Road will provide two-bedroom homes for vulnerable families, who can remain for up to two years while receiving support to find permanent accommodation.
The organisation said modular properties could be constructed between 30% and 50% faster than conventional homes and installed in as little as 12 months. It expects the buildings to remain usable for at least 60 years.
A 10-home development could generate annual temporary accommodation savings of approximately £245,000, according to its calculations.
Teri Jackson, who spent more than seven months living with her sons in hotels before moving into a one-bedroom temporary flat, has been offered a home at Fortfield Road.
“This modular home will change everything,” she said. “Just having space – somewhere we can properly live – would mean the world while we wait for a permanent home.”
PLANNING REFORM NEEDED
Larry Gold, CEOfor Housing and Communities at Places for People, says: “We must move beyond outdated perceptions of modular as a stopgap.
“These are high-quality, long-lasting homes that can play a central role in tackling both the immediate pressures of homelessness and the long-term housing shortage.”
Places for People is calling for faster planning decisions, funding reform, investment in modular construction skills and the release of suitable public land.
It also wants councils to shift spending away from emergency accommodation and towards housing assets that can be reused.
The Local Government Association expects the annual gap between temporary accommodation housing benefit expenditure and government reimbursement to rise from £360 million to £595 million by 2029/30.
Its separate £3.9 billion projection refers to the cumulative funding shortfall between 2017/18 and 2029/30, rather than the annual accommodation bill.
