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A lack of suitable “move-on” housing is piling pressure on temporary accommodation services in Caerphilly.

The latest figures, for June 2025, show the county borough council was temporarily housing 500 people, of whom two-thirds were being put up in bed and breakfasts (B&Bs).

It has warned of “significant” demand and costs, as well as longer placement lengths for people who would otherwise be homeless.

Cllr Shayne Cook, the cabinet member for housing, said the situation Caerphilly was “no different” from the rest of Wales.

The borough is facing higher demand due to “complex reasons” including the cost-of-living crisis, rising mortgages and rents, changes to UK benefits and more private rental landlords choosing to sell up, he explained.

The acceleration in demand is showin in new figures, showing that in the spring, the council began to support another 49 people in temporary accommodation, but could only successfully move 20 others into long-term homes.

Finding accommodation for single people is especially difficult owing to a “significant shortage” of one-bed accommodation in the borough, as well as low turnover in the homes which are available.

A council report also notes single people in need of housing “often” require “a higher level of support need”.

Cllr Cook said “a key contributor to the increase in temporary accommodation use within Caerphilly is the lack of one bedroom accommodation in the private and social housing sector”.

As rising demand and limited supply forces the council to use more expensive sources of temporary accommodation, bills rise and budgets become strained.

Reports show the council’s general housing fund could face an overspend of more than £800,000 this year, “mainly” down to temporary accommodation demand – and in the past three years the council has pumped an additional £4.2 million into that budget area.

Speaking at a scrutiny committee meeting, Cllr Teresa Heron asked what measures the local authority was taking to address overspends and reduce the reliance on more expensive options such as B&Bs.

Nick Taylor-Williams, the council’s director of housing, said the rising costs were “absolutely” reviewing the rising costs, which he said were “predominantly with regards to the lack of permanent move-on [homes] and the lack of temporary accommodation for largely single households across the county borough”.

There are also “too many” families in temporary accommodation, he added.

Mr Taylor-Williams said the spending burden for temporary housing fell heavily on the council, with the UK Government typically providing 20% of placement costs, in the form of housing benefits.

Cllr Cook said Caerphilly was attempting to find more long-term solutions to housing need while also plugging the immediate gaps, because “prevention is key to homelessness”.

The authority is building new council housing “for the first time in decades” and had also invested £1 million towards buying 27 private properties for use as family homes, he said.

“The council has embarked on the Caerphilly Keys leasing scheme, in partnership with the Welsh Government, to encourage more landlords to lease their private properties,” he added.

“We are also bringing in changes to Common Allocation Policy, such as revising the priority banding scheme and introducing a choice-based lettings approach, which will help the council prevent homelessness and alleviate the current pressures on temporary accommodation.”