DISPLACED people could find themselves living in shipping containers, as part of Chelmsford City Council’s latest plan to tackle rising homelessness.

Last week, the council revealed that the number of households being classified as homeless is set to soar from 249 currently to perhaps 500 by 2019/20.

This week, the authority announced it is looking to invest £2 million into eco-modular housing, to help home those families who are declared homeless.

That budget could allow about 20 homes to be built in the city centre by autumn, all capable of housing a family of four, with double glazing and insulation, according to leader of Chelmsford City Council Roy Whitehead.

He said: “We’ve looked at the way other authorities in the UK are addressing homelessness and the method appears to be effective in some areas.

“Many of these designs look like little houses – they’re very good.

“We are planning to situate them on council-owned land around the city centre – we’re hoping they’ll be built by autumn, but of course we need to get planning permission first.

“We’re not going to rush - we want our money to be spent on the correct product.”

To test the waters, the council will soon buy and build one modular home near the city centre, inviting the public and homeless people to view it and provide feedback.

Average earnings are £26,000 in Chelmsford, and with one- bedroom properties selling for £170,000, an individual would need to borrow more than six times their salary to get on the property ladder, according to a council report.

Mr Whitehead added: “The cost of these homes are about £40,000.

“The modular homes will be exclusively for those who have been declared homeless.”