The use of illegal, unregistered children's homes has surged by more than 370% in four years, according to new research.
A new report, published by Commonweal Housing and written by Public First, reveals that cases of unregistered children's home placements rose sharply between 2020/21 and 2024/25, with some individual placements costing up to £40,000 per week.
The report records senior practitioners who say the use of unregistered children's homes was once a rare occurrence coming up once every six months but now it is something that crosses their desk ‘at least once a week’.
Councils turn to unregistered homes when lawful options are unavailable at short notice, with children sometimes placed in hotels, Airbnbs, or holiday lets supervised by agency staff with minimal training.
Many of these arrangements described as short-term last on average six months, with some lasting years, according to the study.
The report found that the surge correlates with the rising complexity of children's needs, a shortage of specialist placements, and poor market incentives deterring providers from accepting high-risk children.
Researchers are calling for improved national data collection, stronger regional commissioning, and partnerships with housing associations to expand emergency accommodation capacity.
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