Westminster City Council is taking the significant step of purchasing homes in a neighbouring borough to alleviate intense pressures on its temporary accommodation services. The central London authority is poised to approve £2.3 million to acquire six properties in Lambeth, located just across the River Thames.
A Crisis in Numbers: Soaring Demand and Costs
The move comes in response to a dramatic increase in homelessness within the borough. Official figures reveal that in the 2024/25 financial year, Westminster saw a surge of more than 30 per cent in households approaching the council for support compared to the previous year. This escalating demand has triggered a parallel explosion in costs.
The council's net spend on temporary accommodation rocketed to £66.2 million in 2024/25. This staggering sum is almost double the £4.5 million spent just three years prior in 2021/22. A key driver of this crisis is the high rent levels in Westminster, which frequently exceed the Local Housing Allowance rates set by the government for benefit claims.
The Strategy: Expanding the Temporary Estate
Faced with this challenge, Westminster has committed substantial resources to a long-term strategy. In March, the council approved a £253.8 million budget for temporary accommodation spending between 2024/25 and 2026/27. The plan involves a major expansion of its temporary housing stock, aiming to increase from around 4,250 units to over 6,000 by 2027/28.
Council officers explained the current difficulties, stating: “Sourcing good quality private sector properties in the current market... is very challenging. The demand has outstripped the council’s supply of suitable accommodation.” This has led to an over-reliance on expensive nightly-rate hotels and apartments, prolonging stays in unsuitable homes for families and individuals while driving up costs.
Looking Beyond Borough Borders
The decision to buy homes in Lambeth underscores a pragmatic, if reluctant, approach adopted by many London authorities. A spokesperson for Westminster City Council stated that while providing homes within the city is the priority, it is sometimes ‘necessary’ to purchase properties elsewhere based on suitability, availability, and budget.
“Many local authorities in the capital buy homes out of borough,” the spokesperson noted. “Wherever possible we try to ensure this is close to people’s existing family networks.” While this cross-river purchase is a local solution, investigations have revealed that Westminster and other councils have previously placed households as far away as Manchester, Middlesbrough, and Southend-on-Sea.
Councillor David Boothroyd, the Cabinet Member for Finance and Council Reform, is set to formally approve the £2.3 million expenditure. The council emphasises that all acquired properties are rigorously assessed for transport links, local amenities, and condition to provide good-quality homes, enabling residents to rebuild their lives.
