Lambeth Council has announced sweeping changes to its housing policy that will see most homeless families relocated outside of South East England due to an escalating accommodation crisis.
Unprecedented pressure on council resources
The South London authority is proposing the most significant overhaul of its Placement Policy in over twelve years as it grapples with what officials describe as "unsustainable pressure" on council finances. Deputy Leader Danny Adilypour revealed that "record numbers" of families are presenting as homeless every day, creating a perfect storm of demand and limited resources.
The scale of the problem is staggering: homeless households supported by the council have increased by 50% in just two years, with Lambeth currently providing temporary accommodation for more than 4,600 households nightly. Despite temporary accommodation being intended for short-term use, shockingly, 2,900 households have remained in insecure placements for over two years, while more than 1,500 have stayed in temporary accommodation for longer than five years.
Financial crisis driving policy change
The financial impact of this housing emergency is devastating council budgets. Lambeth's temporary accommodation costs now exceed £100 million annually, contributing significantly to the £84 million in savings the council must identify before March 2026. This financial imperative is forcing difficult decisions about where homeless families can be housed.
Councillor Adilypour, who serves as Cabinet Member for Housing, Investment and New Homes, explained the council's position: "We are determined to continue meeting our moral and legal duty to homeless families in Lambeth, whilst ensuring the financial stability of the council."
He added: "Whilst this will mean placing families further away from Lambeth than they would like to be, we are determined to give them the stability and security they desperately need by giving them longer term placements in areas that will meet their family, cultural and community needs."
Strict criteria for local placements
The revised policy introduces strict criteria to determine which families can remain in or near Lambeth. Priority for local accommodation will be given to:
- Children studying for GCSEs or A-Levels
- Those with specific medical needs requiring local services
- People in secure employment within the area
- Individuals providing care to someone who would require statutory health and social support if that care ended
The council acknowledges the negative impacts of the new approach, stating: "Many applicants may lose proximity to support networks, schools or employment and be very disappointed with offers." Under the current system, families in Band B category could expect placement within 30 minutes of Lambeth's border, but this will no longer be guaranteed.
The housing shortage in Lambeth remains acute. As one of the country's largest social housing landlords with over 20,000 council homes occupied, the waiting list contains approximately 28,000 households, while only around 800 council properties become available each year. The situation continues to deteriorate, with 478 households approaching the council for help in September alone.
The revised policy is expected to take effect next month once the statutory review function is brought in-house, marking the end of a housing approach that has remained largely unchanged since 2013.
