Municipality intends to secure substantial funds to combat escalating homelessness issue
In the heart of England, Leicester City Council is navigating a complex path towards addressing its growing affordable housing crisis. The increasing number of people without a permanent place to call home in Leicester is a significant concern, with the number of households in temporary accommodation soaring to 332 by December 2023 [1].
Amidst this pressing need, the council has agreed to borrow over £40m to buy properties, with plans to purchase 225 properties for temporary accommodation and lease 125 properties at affordable rent rates [2]. However, the idea of borrowing money to buy properties was first proposed to councillors in January but was withdrawn due to legal concerns [6].
Patrick Kitterick, a Green Party councillor, has expressed concern that legal action may be taken in the future, even if it has not happened yet in similar cases [3]. City Mayor, Sir Peter Soulsby, has acknowledged the matter as legally complex [7]. Despite these concerns, councillors have been assured that other authorities have undertaken similarly funded purchases without problems [4].
The council's commitment to addressing its housing priorities, including affordable housing, is evident. Leicester City Council sees property development and purchase as an opportunity to meet unmet housing needs, as emphasized in local government housing development documents from late July 2025 [5].
The need for affordable, safe housing is not unique to Leicester. Recent UK housing discussions highlight a strong need for such housing to support health and education outcomes [4]. While these do not reference Leicester directly, they underscore growing pressures that likely influence Leicester City Council’s strategies.
It is crucial to note that there are no publicly available recent updates indicating changes or resolutions to earlier legal concerns about the £45m borrowing [1]. Without action, Leicester City Council expects extra costs of £23m in the coming financial year [8].
In the face of these challenges, the council continues to pursue or develop its borrowing strategy to meet increasing affordable housing demand, navigating any legal or procedural challenges internally. For instance, a London council is pursuing registered provider status to help tackle the homelessness crisis in the city [9].
As of January 2023, 6,431 people were on the housing waiting list in Leicester [10]. The council's efforts to secure affordable housing funds and provide temporary accommodation are a testament to its ongoing commitment to addressing this pressing issue. However, further information may require direct council disclosures or news specific to Leicester City beyond these latest available summaries.
[1] Leicester Mercury [2] Leicester City Council [3] Leicester Mercury [4] Local Government Association [5] Leicester City Council [6] Leicester Mercury [7] Leicester Mercury [8] Leicester Mercury [9] The Guardian [10] Leicester City Council
- The housing crisis in Leicester, with the increasing number of people without permanent homes, has become a significant political issue, triggering debates about the appropriate strategies to address the growing demand for affordable housing.
- In the broader context of the UK, affordable housing has emerged as a critical general-news topic, with numerous discussions centering around its impact on health and education outcomes, mirrored in Leicester City Council's efforts to alleviate its own housing crisis.
