Councils will be unable to house homeless families in bed-and-breakfast hotels for more than six weeks, even in emergencies, under a law announced on Monday.
Homelessness campaigners welcomed the move. But the Local Government Association said the law was "perverse" and that it could force some councils to refuse to house some families.

The version of the law that went out to consultation in May said local authorities could exceed the six-week limit in emergencies. But this clause will be dropped when it goes before parliament next month.

Under the law, which will come into force in April, families will be able to sue councils if they keep them in B&Bs for longer than six weeks.

A council's use of B&Bs may also form part of the assessment of homelessness services under the Audit Commission's comprehensive performance assessment.

Councillor Ruth Bagnall, chair of the LGA's housing executive said: "Local authorities are very generous in their interpretation of the homeless legislation and a consequence of this ruling could see councils tightening up on their acceptances and having to make unsuitable placements in the private sector, resulting in the cutting of access to other valuable services such as social services."

She said councils in high-demand areas should be allowed a seven- or eight-week limit.

But Adam Sampson, director of homelessness charity Shelter, said: "This will mean an end to the misery endured by homeless families forced into B&B accommodation for months on end. We are delighted the government has acted to end this terrible practice that has damaged so many people's lives."

ODPM officials said they were confident that councils would meet the target.

Homeless people will also be able to take court action against councils if they breach new standards for temporary accommodation. The standards, which were also announced on Monday, will be issued in the New Year.