Cabinet approves purchase to reduce costs of temporary accommodation

• Newham Cabinet approves plan to buy flats to reduce pressure on temporary accommodation budget
• Purchase will unlock potential to redevelop site to increase to more than 120 properties

Newham’s Cabinet has approved a plan to buy 26 flats, reducing its reliance on costly, insecure accommodation for homeless families.

The flats, spread over two blocks in Chauntler Close, are currently owned by Housing Association Look Ahead.

The area is immediately next to a site designated for extensive regeneration in the Custom House area, and could offer a gateway into more redevelopment while unlocking a potential 100 additional homes in the future.

A national shortage of housing which has placed exceptional pressures on local authorities like Newham, means the Council continues to explore all possible options to reduce its number of households in temporary accommodation; at 6,500 currently, the highest in London.

Newham has taken effective steps to reduce the number in nightly booked accommodation such as hotels, but still faces an ongoing challenge.

The flats, which will be managed for the Council by a third party, will be let at affordable rates to nominated homeless households. 

The Council is not expecting take possession of the properties until late summer 2025. This timeline is intended to provide sufficient time for Look Ahead to support its tenants while ensuring they receive comprehensive support in their move to suitable alternative accommodation. The Council is committed to working with Look Ahead to ensure residents are supported throughout this process with the utmost sensitivity and care, prioritising their wellbeing and a smooth relocation.

“The Council is committed to support those experiencing homelessness, treat them with respect and dignity and find wider sustainable solutions. We want to improve social and wellbeing outcomes for them as well as reducing the budgetary pressure on the Council.” said Cllr Zulfiqar Ali, Cabinet Lead for Finance and Resources. 

“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. The cost of maintaining households in emergency accommodation is a major budgetary pressure which we are exploring all options to reduce.”
 

Published: 06 Nov 2024