Before the 2024 general election, the housing crisis in Britain had reached truly critical levels, with one of the most visible and harmful symptoms being the increasing use of out-of-borough placements. These occur when local councils, unable to find suitable or affordable accommodation within their own boundaries, place households—often vulnerable families with children—in temporary housing far from their local communities, family, and connections.
The root causes of this phenomenon are clear. Between 2010 and 2024, successive Conservative governments oversaw a sharp decline in the construction of social housing, despite rising demand and a growing need for decisive action. A recent report by Shelter emphasises that between 2014-2024, we’ve seen a net loss of 260,000 social rent homes. Combined with the erosion of local authority budgets and a creaking planning system, out-of-borough placements became the defining symptom of a deeply ineffective national housing strategy.
These placements often have severe and negative consequences. Families are torn away from schools, jobs, and support networks, placing an enormous strain on mental health and family dynamics. Children must often change schools with little notice, and parents may lose access to childcare, employment, or vital community support structures.
Out-of-borough placements provide no solution to Britain’s housing crisis—they simply shift the pressure elsewhere. Receiving councils often lack the resources to accommodate incoming households, while the demand artificially drives up local rents and reduces availability for residents. I’ve seen this first-hand both as a local councillor and now an MP in my own constituency, Gillingham and Rainham.
That is why, since taking office in July last year, this Labour government has taken strategic steps to address both the immediate harms and the underlying causes of out-of-borough placements. At the heart of this effort is a dual approach: reducing the need for such placements by increasing the supply of affordable homes and improving oversight and coordination between councils when they do occur.
Paramount to this strategy, is the government’s commitment to building 1.5 million new homes by 2029, including a substantial expansion of social and council housing. Alongside nearly £40 billion for affordable and social homes announced at the recent spending review, we are introducing local housing targets, streamlined planning, increased ‘land value capture’, devolved housing responsibilities, collaboration with private investment, and the strengthening of tenancy rights through the transformative Renters’ Rights Bill. Combined, these measures will enable us to deliver the biggest boost in social and affordable housing in a generation.
As a member of the Housing, Communities and Local Government (HCLG) Select Committee, I have repeatedly called for increased data tracking and measurement tools to give us greater insights into this problem. Currently, no centralised record exists, making it difficult to understand the true scale of displacement and to plan appropriate interventions. Without this shared measurement platform, it becomes increasingly difficult to form an effective national strategy. Therefore, I am pleased that the government has announced it will make data more publicly accessible, as well as working with local authorities and MHCLG’s expert homelessness advisors closely to ensure data quality and reporting practices improve. This is an important first step.
I have also advocated for a review of the funding allocation model for local authorities, having seen first-hand the inefficiencies of our current system as a local councillor. Presently, host councils are often penalised for hosting out-of-area placements, as housing benefit and homelessness support funding are tied to the placing authority. In November 2024 the Government announced that from 2026/27 it will move gradually towards an updated allocation system for council funding. This will build on the proposals set out in the previous Government’s Review of Relative Needs and Resources (the ‘Fair Funding Review’).
Critically, the HCLG committee have proposed strengthening communication protocols between local authorities, requiring councils to notify and consult with each other when placing families beyond their borders. This measure aims to reduce friction, increase accountability, and ensure that vulnerable families are not abandoned in unfamiliar locations with no authority to turn to for support.
Whilst these are initial steps, they are vital in allowing us to build a coherent plan of action to tackle the scale of out-of-borough placements. With local authorities’ use of temporary accommodation increasing by 9% in London, 50% in the South East of England, 73% in the South West, and 216% in the North East, the need to undertake more formalised monitoring of the use of out-of-borough placements is key. The government’s focus on data, coordination, and housing supply is beginning to shift the conversation. Local councils and housing charities have reacted positively to the renewed emphasis on long-term solutions rather than temporary fixes, but there is still much work to be done.
Alongside this, the strengthening of tenants’ rights through new legislation will also help us to combat the problem. This Labour government’s new Renters’ Rights Bill, which abolishes Section 21 “no fault” evictions, will help reduce the flow of households into temporary accommodation in the first place. Many out-of-borough placements stem from sudden evictions, especially in parts of the country where the rental market is unregulated and highly competitive. By removing the means by which rogue landlords evict families at short notice, we can prevent even more people from entering this negative cycle or relocation.
The broader housing strategy fundamentally lays essential groundwork for reducing out-of-borough placements over time. The Prime Minister’s ‘Get on and Build’ mantra is epitomised by recently announced new powers for councils to keep housebuilders on track, and a promise for housebuilding timeframes to be set before planning permission is granted. Developers who repeatedly fail to build out or use planning permissions to trade land speculatively could face new ‘Delayed Homes Penalty’ or be locked out of future permissions by councils. The message from this government could not be clearer, it’s time to build at scale.
The HCLG’s recent report investigating the ‘Crisis in Temporary Accommodation’, gives key insights and recommendations for how we can combat the national housing emergency. The initial steps mentioned are key, but there are future changes which should be considered to meaningfully reduce out-of-borough placements and restore housing stability.
As highlighted, the creation of a national database would be significant. By introducing a central record of out-of-borough placements, local and national authorities will be better equipped to identify trends, coordinate responses, and evaluate the effectiveness of current policies. This should help to prevent families from falling through the cracks and ensure that vulnerable households receive appropriate follow-up care.
We should also ensure that housing targets are matched by delivery mechanisms. This means reforming the planning system to prioritise affordable and social housing, empowering local authorities with land-buying powers, and enabling councils to borrow and build at scale.
Lastly, the voices of those with lived experience should be central to policy design. Families who have been moved miles away from their communities know better than anyone the emotional and practical toll this system imposes. Their insight can help shape both placement policy and housing strategy for a more effective system overall.
Out-of-borough placements are a stark symptom of a housing system that has long failed to meet people’s needs. The previous government’s inaction allowed thousands of families to be displaced from their communities—isolated, unsupported, and increasingly dependent on temporary housing. But with a renewed focus on building homes, reforming placements, and restoring local capacity, this Labour government is beginning to chart a new course.
It won’t be fixed overnight. But by championing a ‘build now’ principle and improving oversight and coordination between local authorities, we can ensure that housing policy no longer uproots lives—but helps people plant roots instead.
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