Nearly £1.5m has been allocated to getting homeless families out of bed and breakfasts into council accommodation in Mole Valley.

Last week Mole Valley Council’s executive approved expenditure of up to £1.4m to buy five residential units to tackle rising homelessness and reliance on B&Bs.

Families are currently placed in B&Bs as far afield as Crawley, Horley and Croydon, which cost the council an estimated £63,000 in 2012/13 alone.

It is estimated that through buying the five units as an alternative to B&Bs the council will save £56,000 annually.

Councillor Rosemary Dickson, who represents Leatherhead South, said: "In my experience homelessness rates have gone up. I'm doing a lot more work with the homeless than before.

"I think this accommodation will help but it’s only the tip of the iceberg. We have got to provide as much accommodation as we can particularly for mothers and babies.

"I’m very much in favour and welcome the decision."

The council’s current 19 emergency accommodation units are constantly full.

During 2012/13 the average number of homeless households in B&Bs was six and the number peaked at 10.

Councillor Bridget Lewis-Carr, who represents Leatherhead North, said the shortage of housing for homeless people was ‘absolutely dire’ in Mole Valley.

Of the decision, she said: "It’s about time. We have got to get these people out of bed and breakfasts and into their own homes, even if the homes are temporary."

Councillor Vivienne Michael, portfolio holder for customer service and wellbeing, said: "By purchasing additional residential units, Mole Valley District Council will be able to offer homeless families more stability and a better quality of accommodation while longer term housing solutions are sought.

"Our current stock of emergency accommodation is in constant use and since 2011 the council has had to rely on the use of additional bed and breakfast accommodation which is not ideal."

The council’s preferred option is buy a property with three bedrooms and four properties with two bedrooms, which are expected to reduce homeless families in B&Bs by more than 90 per cent.