Waltham Forest Council is set to radically alter its approach to temporary accommodation by signing leases for a minimum of ten years and a day, in a bid to secure full government funding and tackle a severe budget crisis.
A Borough Under Severe Housing Pressure
The number of households living in temporary accommodation within the east London borough has soared by nearly 90% in just three years. Council data from October shows around 1,700 households are now in temporary housing, a dramatic increase from the 900 recorded in 2022.
Charlie Conyers, the council's Assistant Director of Accommodation Options and Allocations, warned this surge has "significant financial implications" and means more families are living in conditions that could harm their wellbeing. The situation has pushed the council's temporary housing budget into a £14.4 million overspend.
The Financial Driver Behind the 10-Year Plan
Currently, the council leases properties for between three and five years to house those in need. Under existing housing regulations, authorities can only reclaim 90% of their rental costs from the government for leases under a decade.
By extending leases to ten years and a day, Waltham Forest will become eligible for a 100% subsidy, significantly easing the financial burden. It is important to note this does not mean a single household will occupy a property for the full decade, but that the property itself will remain in the council's portfolio as temporary accommodation for that period.
This strategy is not unique to Waltham Forest; neighbouring boroughs including Enfield, Hackney, and Greenwich have already adopted similar schemes.
A London-Wide Crisis and Broader Solutions
Waltham Forest's struggles reflect a capital-wide emergency. A report by the London School of Economics, commissioned by several London government bodies, revealed that temporary accommodation budgets across London are overspent by a combined £740 million.
This spending is now equivalent to 11% of the average household's council tax bill, or one in every nine pounds collected. In response, the council is pursuing multiple strategies:
- Pushing for more new homes in the borough, including recently approving an 18-storey tower in Walthamstow.
- Exploring the option of moving residents into social housing outside London.
The issue of distant placements is a growing concern. Investigations have found most London boroughs are now placing people in temporary homes outside the capital, some as far away as Middlesbrough and Newcastle, severing vital links to support networks, jobs, and schools.
Campaigns are calling for a distance cap on such placements and a ban on councils ending their housing duty to someone who refuses a long-distance offer.
