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Homelessness among young offenders leaving custody is finally being tackled.

The Youth Justice Board has published a strategy paper looking to phase out placing young offenders in B&Bs by 2010, and to end the practice of keeping young offenders in custody unnecessarily within the next three years.

Last year, 15 per cent of young offenders coming out of custody were left homeless after their local authorities failed to house them. Research by the Audit Commission found that 9,000 young offenders were badly housed while an estimated one in 10 of under-18s in custody are only there because of a lack of suitable accommodation.

In the past month, two councils have been brought to task for their failure to provide adequate housing to young offenders in their care by the Howard League for Penal Reform. The charity won a landmark High Court victory in one case, which could pave the way for further challenges to councils reneging on their duty of care for children.

Chris Callender, assistant director of the league, says that provision of housing in 10 other cases the charity is handling is vague or non-existent.

"Many children do not know, even on the day of their release, where they will be spending their first night," says Callender. "Others may be placed in inappropriate housing which puts them at risk and increases the likelihood of reoffending. This is a long-neglected area upon which a light is only just being shone."

Councils are "not complying with the law", he says, citing the case of a 16 year old in the care of a council in the South East due to be released from a secure training unit, who still does not know what accommodation arrangements have been made for her. The charity has just issued legal proceedings against the council seeking to force them to carry out a framework assessment.

A reluctance to house young offenders, who are often seen as troublesome tenants, is one of the problems, according to Chris Holmes, the former director of Shelter who now sits on the Youth Justice Board.

"There are assumptions about antisocial behaviour, and there is often a reluctance to provide accommodation, even when the need is recognised," he says.

"The background to this is that there has been a lack of co-ordination between housing, social services and other agencies."

Housing providers are loath to accept referrals unless support packages are attached but with funding for housing-related support for the vulnerable in short supply, young offenders are often a low priority.

Youth offending teams (Yots) are able to address many of the support needs of young offenders but there are still "significant gaps in provision," with 16 and 17 year olds among the most vulnerable of young offenders.

The YJB has called for housing authorities to sit on Yot management boards, which currently only occurs in some authorities.

The impact that good, stable accommodation can have on reoffending rates is well established. In a 2002 report, the Social Exclusion Unit found good housing can reduce reoffending by up to 20 per cent.

That point was emphasised by Julian Corner, chief executive of Revolving Doors, a charity that deals primarily with adult offenders. He says 55 per cent of the charity's clients believe poor, or no housing, is the key factor in explaining why they became repeat offenders.

Corner welcomes the YJB paper, but emphasises that "strong leadership" is needed to co-ordinate the agencies involved in the care of young offenders.

"Young people in poor accommodation are being set up for years of committing crime because they are not being properly supported into independence," he says.

"This is a transitional point, where young people are either going to leave offending behind them, or think that the world is against them and that they might as well do what they want."

The YJB paper is out for consultation. Go to www.youth-justice-board.gov.uk