York council wants to explore shipping container and modular homes for rough sleepers, funded by new government money. 800 on the housing list need a one-bed.
City of York Council wants permission to look at shipping containers and other modular homes for people sleeping rough. The idea is in a homelessness strategy update that went to the council’s People Scrutiny Committee on Monday 26 October.
The homes would be paid for from the second and third years of new government money for rough sleeping. Nothing has been decided. Councillors on the Executive take the decision, and no site, supplier or number of homes is named.
What the report proposes
The report says modular housing “is increasingly offered as a solution to a lack of affordable housing”. It lists the kinds of homes local firms are offering:
- garages converted into bungalows
- shipping containers repurposed as homes
- modular homes “indistinguishable from a traditionally built home”
Most offer quick turnaround, the report says, and some can be hired by the month rather than bought. That suits short funding rounds like the new rough sleeping money. It adds that “there are still planning implications”. Planning constraints are listed among the report’s main risks.
Officers ask for “permission to explore modular housing” for years two and three of the funding. Read the full homelessness strategy update on the council’s website.
Where the money comes from
In August the Prime Minister announced a £442 million package to offer everyone sleeping rough a route off the streets by Christmas.
York’s share is £483,000 for the first year, according to the council report. It comes through the Mayoral Strategic Authority. That first tranche has to be spent by March 2027 and is revenue only. The second and third years are split between revenue and capital, and their amounts are “indicative and not confirmed”.
Because of that deadline, officers want delegated authority to spend the money without each item going back to councillors. The report warns that otherwise “York loses the funding”.
How many people sleep rough in York
The council’s annual count found 25 people sleeping rough in 2025-26, down from 30 the year before. Half of the 25 had no local connection to York, the report says.
It gives reasons York draws people from elsewhere:
- no ticket barriers at the railway station
- generous tourists
- drugs made easy to find by county lines gangs
The council has no legal duty to house people with no local connection. All the existing provision “is usually at maximum capacity and beyond”, the report says.
Why the council is looking at new kinds of homes
The real shortage is one-bedroom homes. On 15 October, 800 of the 1,387 live applications on York’s housing register were for a one-bedroom home.
The rest of the list breaks down as:
| Bedrooms needed | Live applications |
|---|---|
| 1 | 800 |
| 2 | 305 |
| 3 | 206 |
| 4 | 65 |
| 5 or 6 | 10 |
| Studio | 1 |
| Total | 1,387 |
The strategy, which runs from 2024 to 2029, aims to add 150 one-bedroom homes to the council’s stock. People leaving the council’s hostels stay “longer than would be ideal”, the report says, mainly because there is nowhere for them to move on to.
York has done around 80 Housing First placements, with 50 still active and 10 people waiting. Officers expect 40 to 50 more will be needed by 2029.
The other routes to more one-bed homes in the report are:
- a feasibility study into the council buying section 106 homes from developers
- around 125 empty council homes waiting for repairs or cleaning, some of which could be set aside for people leaving hostels
- letting more one-bed homes to people from hostels: 27% went to them last year, and the report raises the option of 50%, which would mean fewer lets to others needing a one-bed home
- buying flats on the open market with Right to Buy receipts
A pipeline in the papers counts 41 new one-bed homes for social rent likely to come through section 106 by 2029.
The hostels
The council owns and runs four supported housing schemes in the city centre: the Peasholme Centre, Robinson Court for women, Union Terrace and Howe Hill for 16 to 25 year olds. The report says they “do effectively prevent rough sleeping”. They do not suit everyone, for example someone trying to stay off drugs or alcohol.
A council analysis of hostel data for 2025-26 found 42% of men and 38% of women whose hostel stay ended had been excluded. Reasons included violence, drug use and antisocial behaviour.
What happens next
Scrutiny councillors were asked to comment before the Executive decides. Minutes of Monday’s meeting are not yet published.
An agenda supplement said the Executive would decide on 3 November. The report is not on that meeting’s agenda. The Executive’s forward plan now lists the homelessness strategy update for its meeting on 1 December.
What it means for you
- No container homes are coming yet. The council is asking only to explore the idea, for money that may not arrive until after March 2027. Any homes would still need planning permission, so neighbours would get a say through the usual planning process.
- If you are worried about someone sleeping rough, you can alert the local outreach team through StreetLink.
- If you are at risk of losing your home, contact the council’s housing options team as early as you can. Its prevention work is part of the same strategy.
- To have your say, you can register to speak at the Executive on 1 December through the council’s democracy pages.
Have your say