Councils across England are spending millions to relocate homeless families from major cities and the south-east to more affordable areas in a move described as a “national scandal.” A Guardian analysis reveals that since 2020, councils in cities like London and Birmingham, along with others in the south-east, have paid more than £5.2 million to relocation companies facilitating these moves.
Relocation to Cheaper Regions
Firms such as Reloc8 UK arrange housing in regions where rents align with Local Housing Allowance (LHA). However, these homes are often located in smaller, economically deprived towns in the Midlands and north of England. Once moved, families are placed in private rented housing and are deemed permanently rehoused, severing ties with their original councils.
In London, some families are reportedly given only 24 hours to accept relocation offers or face losing their emergency housing. Critics argue the practice amounts to “social cleansing,” with ethnic minority families disproportionately affected and often relocated to predominantly white areas where they feel isolated and unsupported.
Surge in Payments Amid Rising Homelessness
Payments to relocation firms have risen sharply in recent years, reflecting the growing homelessness crisis in England. Reloc8 UK alone has received £3 million from London and Birmingham councils since 2020. The company has defended its role, citing affordability challenges and its provision of essential support, including transport, furniture, and appliances for relocated families.
However, concerns remain over the lack of additional support provided to communities receiving relocated families, many of which are already struggling with poverty and limited resources.
Criticism of Government Policies
Experts and MPs have criticized the practice, calling for urgent reforms. Dr. Shabna Begum, CEO of the Runnymede Trust, described it as “racialized, coercive displacement” and a damning indictment of the country’s housing system.
MPs in the north-east, where many families are relocated, highlighted the strain on local services. Mary Kelly Foy, MP for Durham, called it “shameful,” while Grahame Morris, MP for Easington, warned against forced relocations under the threat of homelessness.
Councils argue the crisis stems from frozen LHA rates, a lack of affordable housing, and severe cuts to central government funding. Between 2013 and 2023, the number of social housing units in England fell by over 250,000, while homelessness reached record highs.
Call for Solutions
Councils have urged the government to raise LHA rates annually to ease pressure on housing services and reduce the need for out-of-area relocations. However, with rates frozen until 2026, the reliance on relocation firms like Reloc8 UK is likely to continue, fueling further controversy.
