Illistration

This financial model provides councils with a long-term, predictable and cost-controlled approach to delivering purpose-built Temporary Accommodation (TA) on council-owned land. The structure requires zero upfront capital investment, while offering substantial savings compared with reliance on emergency TA such as hotels, B&Bs and nightly-paid units.

All figures in this summary are based on a modern apartment block of approximately 40 units delivered on a typical council-owned site of 0.31 ha / 0.77 acres.

This scheme is used for illustration purposes only to demonstrate the financial impact, savings potential, and mechanics of the model.

Actual costs and outputs will vary by site.

Current Emergency TA Model. Projected 40-year cost : £89.9 million based on published data 

Driven by:

• High nightly-paid rates
• Market volatility
• Long lengths of stay
• Limited supply of suitable accommodation

Total 40-year cost: £45.7 million based on LHA rates + 2% annual increase

Includes:

• Predictable, capped annual lease payments
• Maintenance and lifecycle responsibilities
• Zero upfront capital requirement
• Long-term supply of modern, energy-efficient homes

Headline Saving

£45.2 million saved over 40 years compared with the current emergency TA model of £89.9 million.

This reduction is achieved by replacing high-cost, short-term placements with a stable, purpose-built accommodation solution.

Construction estimate: c. £10 million

• Plus: professional fees, abnormals, sustainability enhancements
• Fully funded through Civic Place — no council borrowing required
• Lease Back to the Council 40-year optional lease
• Indexed, capped annual increases
• No obligation to proceed if council priorities change.

At practical completion, the scheme is refinanced based on its completed value.

• Council receives: → up to 20% of the refinancing surplus
• This provides an immediate capital receipt for the General Fund or housing reinvestment.

Our model turns a volatile cost pressure into a stable, planned revenue commitment, allowing:

• Improved medium- and long-term financial planning
• Reduced exposure to the nightly-paid market
• Lower financial risk over time

• Zero upfront capital cost
• £45.2m long-term saving
• Predictable, capped revenue payments
• No development or construction risk to the council
• 20% refinancing uplift returned to the council
• Highly energy-efficient homes reduce running costs
• Optimises use of existing public land assets

This financing model offers councils a smart, sustainable and financially advantageous way to meet long-term Temporary Accommodation needs. The example 40-unit scheme demonstrates how substantial savings can be achieved through a predictable, risk-free delivery structure that immediately reduces pressure on the General Fund