An ‘ethical lettings agency’ could be set up by Enfield Council to deal with the borough’s soaring rate of homelessness.

The council has acknowledged a ‘radical change of direction’ is needed after homelessness shot up by nearly 250 per cent between 2010 and 2017 – partly thought to be due to the Government’s welfare reforms.

To address the worrying rise, the council wants to ensure more people have access to privately rented homes instead of being housed in temporary accommodation.

More than 11,000 people are living in temporary accommodation in Enfield – the third-highest rate in England.

This type of housing comes at a high cost to the council – currently more than £7 million per year – and can sometimes lead to people being housed outside the borough.

Enfield Council commissioned think tank the Smith Institute to draw up a report on the causes of the homelessness problem and what could be done to tackle it.

The report reveals the rise is “largely due to the failure of private tenancies”, adding the main cause is “likely to have been welfare reforms”.

These reforms include cuts to the local housing allowance and the roll-out of Universal Credit – a welfare package that combines previously separate benefits into one monthly payment.

The report adds that people on low incomes could be moving to Enfield from inner London because accommodation is more affordable further away from the city centre.

Enfield Council’s response to the report says early intervention to stop people from becoming homeless will be a key focus of its strategy.

It adds setting up an ethical lettings agency would help to cope with growing housing demand and improve the quality of private accommodation in the borough.

The agency would focus on securing properties from private landlords and offering long-term tenancies to homeless people.

Pre-tenancy training could be provided to help people stay in their homes, along with guaranteed rents and maintenance.

The agency would come with an up-front cost to the council but would ultimately help to reduce the large amount of money it spends on temporary accommodation.

Enfield Council’s top decision-makers will meet to discuss the report on Wednesday (September 11).

As well as approving the development of a business case for a lettings and property management agency, they are expected to sign up to pan-London housing procurement company Capital Letters.

This joint approach to securing homes cuts costs for all local authorities involved in the scheme and allows residents to be housed closer to their home boroughs.