Modular homes could help end temporary accommodation crisis
12:01 AM, 18th August 2026, 1 hour ago
One of the UK’s largest social housing providers claims modular homes could be the key to solving Britain’s housing crisis.
Places for People (PfP) wants to work with councils across the country to prioritise modular housing for temporary accommodation instead of costly hotels and B&Bs.
A modular home is a type of prefabricated housing built in sections off-site and with the potential to be installed in 12 months.
End temporary accommodation crisis
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.”
High-quality homes
Mr Gold added that perceptions of modular housing as a stopgap solution must change, as these homes can meet the same quality and environmental standards as traditional builds while being installed on small or underused plots of land.
Mr Gold said: “Modular homes 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.”
Councils spending £2.8 billion a year on temporary accommodation
According to PfP, more than 134,000 households are living in temporary accommodation across England, with councils spending £2.8 billion a year on providing temporary accommodation.
PfP is working with Bristol City Council and has delivered 20 modular homes for people at risk of homelessness.
The social housing provider estimates that each modular home could save councils up to £24,540 a year in rental costs for every household moved out of emergency hotel or B&B accommodation.
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.”
