"Life changing” modular homes could help Government break the cycle of temporary accommodation, provide one solution to the housing crisis and save millions a year

As the UK grapples with a worsening homelessness crisis, a major housing provider is calling on councils across England to unlock unused land for modular homes instead of spending billions on emergency hotels and B&Bs – a move that could save millions of pounds and give thousands of families a stable place to live.

Aligned to Prime Minister Andy Burnham’s recent pledge to end rough sleeping, PfP has already identified opportunities to work with local authorities, redirecting some of the £2.8 billion spent every year on temporary accommodation into high-quality modular homes built on vacant council-owned sites, an approach it has trialled in Bristol and is now looking to roll out nationally.

More than 134,000 households in England – including 176,000 children – are currently living in temporary accommodation, according to the latest Government figures. For many, that means months or even years in cramped hotel rooms, hostels and B&Bs, often moving from place to place with little privacy, no cooking facilities and no permanent address.

At the same time, councils are facing soaring costs. The £2.8 billion annual bill for temporary accommodation is forecast by the Local Government Association to reach almost £4 billion by the end of the decade, with nearly £850 million already spent each year on emergency hostels and B&Bs alone.

PfP says that money could instead be used to house people in purpose built modular homes on unused council land, reducing temporary accommodation costs by approximately £24,500 per household while giving families a stable, safe place to live much sooner.

To do this, PfP wants to work with councils to make suitable unused land available for development and is offering to work with them and Government to roll out nationally an approach it has already successfully trialled in Bristol.

For mother-of-three Teri Jackson, 38, from Bristol, the need for change is urgent. She currently lives in a one-bedroom temporary accommodation flat with her two sons, aged 20 and 11, while waiting for a permanent social home.

Despite limited space, it’s an improvement. In January 2024, she left a privately rented home she describes as “uninhabitable” and was placed in emergency accommodation beginning a period of crippling instability which saw them spend over seven months in hotels, moving frequently.

Teri said: “For seven months I had no fixed address and me and my sons were just living on top of each other. There was nowhere I could cook or wash clothes and we ate takeaways every night. It was unhealthy and so expensive.

“For the last seven weeks, I was moved every Monday. I wouldn’t know where we were going until that morning. I had to pack everything on Sunday, wait, then move.

“My son missed school every Monday for seven weeks, and I had to take time off work. At one point we were placed in Bath - a 90-minute round trip to school.

“It felt like I didn’t exist - I was just surviving for my children.”

Teri says she recalls once seeing a £2,900 invoice intended for the local council for a three-week hotel stay, despite her not even having somewhere to cook for her children or wash their clothes.

PfP, the UK’s leading social enterprise and one of country’s largest social housing providers, believes using that money on modular housing offers a practical and cheaper alternative.

Built off-site and installed in as little as 12 months, modular homes meet the same quality and environmental standards as traditional builds, last for at least 60 years, and the construction process can be 30-50% faster. 
Crucially, they can be installed on small or underused plots of land - including disused car parks and other vacant council-owned sites that might otherwise sit idle.

PfP says councils in England could help rapidly deliver affordable, quality homes for thousands of families reliant on temporary accommodation by bringing underused public land into use and redirecting temporary accommodation funding into housing people in modular housing instead and away from costly hotels and B&Bs.

It wants to work with councils to scale this approach up nationally to support the Government tackle homelessness. This could see thousands of homes delivered while saving councils hundreds of millions of pounds over time.

In Bristol, the approach is already being put into practice. Places for People, working with Bristol City Council, has delivered 20 modular homes for people at risk of homelessness to date, with more nearing completion.

Based on its work to date in Bristol, PfP calculates that each modular home could save councils up to £24,540 on rents per household every year where an individual or family is moved from emergency hotel/B&B accommodation. PfP sets rents at costs rather than for profit. *

A development of ten homes, for example, could save around £245,000 annually - while providing families with self-contained accommodation, including private bedrooms, kitchens and living spaces.

At Fortfield Road in Bristol, a new scheme of two-bedroom modular homes for vulnerable families is nearing completion. The homes, constructed by PfP’s own modular specialist Modularwise, will offer stability for up to two years, alongside tailored support to help residents move into permanent housing.

Teri and her sons, currently in a one-bed emergency accommodation flat managed by  PfP, have been offered a place to live there while they wait to secure a social home.

Teri said: “When I moved into my current place, it felt amazing because we could cook, wash, and have privacy. But it’s still one bedroom.

“Both my children have additional needs, and the space just doesn’t work. This modular home will change everything. Just having space - somewhere we can properly live - would mean the world while we wait for a permanent home.”
In addition to a private space and an own front door, schemes like this also integrate support services, connecting residents with healthcare, employment and other resources - something rarely possible in temporary accommodation. This includes a pathway into more permanent accommodation. Combined, modular housing supports long-term wellbeing compared with other forms of temporary accommodation.

Larry Gold, CEO for Housing and Communities at PfP, said: “Temporary accommodation has become a national crisis, with hundreds of thousands of families - including 176,000 children - growing up in hotel rooms and B&Bs without the stability or space they need to thrive.

“There is a clear opportunity and urgent need to do things differently and we want to use our experience to help Government and councils end the homelessness and temporary accommodation crisis.

“By investing in modular housing, we can not only reduce the enormous costs associated with temporary accommodation, but far more importantly provide people with the safe, secure homes they deserve.

“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.

“We are here and ready to work with Government and councils to do this. The funding is already there; we need to use it more effectively – supported by speeding up the planning process and unlocking unused public land.

“Modular housing gives us a practical way to act now due to quick delivery - moving families out of unsuitable accommodation and into homes where they can rebuild their lives, with the right support alongside them. We are here and ready to help this national rollout.”

David McNulty, Executive Director of Housing at Bristol City Council, said: “We welcome any interventions that seek to provide more suitable housing options across the country. The housing crisis continues to have a significant impact across Bristol, with more than 18,000 households on the housing register and almost 2,000 households currently living in temporary accommodation. We know that too many people are struggling to access the safe, secure and affordable homes they need.

“Addressing this challenge requires a coordinated and ambitious approach. We are working with a wide range of partners across the housing sector to increase the supply of homes through a variety of delivery models, making best use of available land and embracing innovation where it can help us deliver homes more quickly and efficiently.

“Modern Methods of Construction have an important role to play in that effort, and we have already pursued a number of opportunities in Bristol. Our partnership with Places for People demonstrates how modular housing can provide high-quality, energy-efficient homes at pace, helping to reduce reliance on temporary accommodation while giving people the stability they need.

“By combining innovation, partnership working and a range of housing delivery approaches, we can make a meaningful difference for people in Bristol and help meet the growing demand for affordable homes and temporary accommodation.”

While increasing the supply of permanent affordable homes remains essential, PfP is urging policymakers to recognise the role modular housing can play as an immediate, scalable solution.

PfP is calling for:

• Leadership: PfP wants to work with councils across the country to prioritise development of modular housing for temporary/emergency accommodation, by unlocking unused public land, identifying sites for homes and redirecting money spent on hotels and B&Bs.    
• Planning and regulation: Faster planning processes, including the introduction of fast-track approvals for modular developments; review of regulation to enable fast delivery  
• Skills: Investment in skills and training to grow the modular construction workforce  
• Funding: Reform of funding models to prioritise modern methods of construction in temporary accommodation provision