Council calls for ‘urgent’ review of permitted development rights due to out of area placements

It allows developers to house people in spaces not built for residential use, which are often too small and not suitable for people to live in.

According to its website, Theori Housing Management Services works with councils in London, and more recently outside of London, to provide short and longer-term temporary accommodation for homeless people.

The firm, which is based in the capital, has confirmed it is arranging the accommodation on behalf of Newham Council.

The council added: "The scale of London’s homelessness crisis means that housing demand far outstrips supply in the capital. As a result, local authorities sometimes have to look to nearby areas and properties such as Anchorage House to provide homes for families who would otherwise face the uncertainty of life in B&B or hotel rooms."

Theori said it will continue to support both local authorities in the management of Anchorage House.

However, Medway Council raised concerns about the out-of-area placements.

A recent Inside Housing investigation revealed that Medway was receiving the most homeless households from London local authorities.

It, along with other councils in similar positions, said the trend was putting pressure on their services and making it harder for them to house their own homeless households.

In a statement, Medway said it was “aware of reports that Anchorage House, an office block in Chatham, may be used for temporary accommodation by a local authority in London”.

“Although local authorities retain the responsibility for the families they place here, it does have an impact on our local support services.

“Out-of-area placements reduce the number of homes on the market for local residents to access, drives up housing costs and places additional strain on local services such as social care, schools and healthcare providers.”

The council said it was facing “significant pressures” regarding temporary accommodation and homelessness duties.

Naushabah Khan, Medway Council’s portfolio holder for housing and property, said: “We understand this accommodation has been brought forward through permitted development rights, which allows the conversion of office space into housing without planning consent, giving the council little control or influence.

“We are urgently asking government to review the policy of permitted development rights.

“We would also encourage government to consider the impact out-of-area placements have and to ensure that appropriate funding is allocated to councils which are adversely impacted.”

The government has been contacted for a response.

The latest government data, published last week, found that English councils’ spending on temporary accommodation had increased by 9% last year, to hit £1.7bn.