A NEW council-owned lettings agency is to be set up in Worcester to find vulnerable people places to live.

Under the deal, residents at risk of being homeless can access private sector rental properties to keep them off the streets.

The city council’s Conservative cabinet has agreed to formally back the scheme, and are hoping it will help tackle a waiting list 4,000 strong.

The agency, which will be run by Worcester Community Housing, will identify landlords who want to rent out unused properties at lower rates.

A report before the cabinet, which recommended it be accepted, stated the private sector market is “closed off” to people unless they have rent in advance, references, a bank account and guarantor.

As your Worcester News reported this week, 588 people were declared homeless in the city during the last year, the highest rate since 2005 and a 25 per cent surge since last year.

Councillor Simon Geraghty, the leader of Worcester City Council, said: “The reality is, we’ll never be able to provide enough affordable homes because need outstrips supply.

“But this will help vulnerable people who otherwise could not access the private housing market. It’s an important step forward.”

Councillor Paul Denham, deputy leader of the opposition Labour group, said: “We all know there is a desperate need, in both the public and private sectors, and I wish [the scheme] well.

“The big question is whether it will attract enough landlords, but we’ll have to wait and see.”

The main customers will be people “at risk of homelessness” or those who are formally living rough.

The council’s strategic housing service is now aiming to recruit as many landlords in the city as possible.

The agency, which will be up and running imminently, will run until at least January 2014 and possibly beyond if it proves successful.

Landlords will be protected against any loss of rent and damage to, or theft from, their properties.