London council to buy block in Essex to reduce temporary accommodation pressures

Newham has the highest number of households in temporary accommodation in the country – 5,883 as at the beginning of April.

Of those, 3,198 were placed in nightly booked properties, the most expensive and insecure form of accommodation. 

The council is forecasting an overspend of £4.6m in 2023-24, attributed to homelessness budgets.

The report said: “The council has taken effective measures to manage down the number of households requiring temporary accommodation, particularly those in nightly booked. 

“However, it will be challenging to continue to reduce these numbers further in the coming year given the combination of increasing demand coming from recessionary pressure, lifting of eviction restrictions, an anticipated increase in refugees from Ukraine and other short-term pressures. 

“Increasing the supply of affordable housing is one of the most significant ways in which the council can intervene in the local housing market to try to address these challenges.”

Before the council intervened, the scheme in Harlow was intended to be sold to a build-to-rent provider.

Newham will look to lease the flats to a third-party housing provider. 

Shaban Mohammed, cabinet member for housing management and modernisation, housing needs, homelessness and the private rented sector, said: “Increasing the supply of affordable housing is one of the most significant ways in which Newham Council can intervene in the local housing market to try to address these challenges. The cost of maintaining households in emergency accommodation is a major budgetary pressure. 

“Burnt Mills is a key acquisition, part of the continuation of our accelerated acquisition programme to support our efforts to reduce homelessness. 

“At least 50% of the 172 residential units will be used to assist in reducing the council’s reliance on costly, insecure, nightly let accommodation; plus, as studies have shown, will have a positive impact on the life outcomes of families generally and, in particular, children.

“The property will deliver much-needed affordable and accessible housing to be let at Local Housing Allowance rent and market rent.”

Newham recently agreed a new damp and mould strategy, which includes plans for rolling inspections of the temporary accommodation it rents. 

In September, it revealed that it is planning to buy up properties where tenants have been threatened with eviction because the landlord no longer wants to let the property as temporary accommodation.