Harrow Council Delegates Property Purchase Authority to Tackle Temporary Accommodation Crisis
In a bold move to address escalating housing costs, Harrow Council in North London has approved a new policy granting officers the power to purchase properties for social housing without waiting for Cabinet approval. This measure is designed to enable the local authority to act swiftly when suitable homes become available on the market, as part of a broader strategy to combat the soaring expenses of temporary accommodation.
Rising Costs and Growing Demand
According to council figures, the cost of nightly accommodation has tripled from £7.8 million in the 2023/24 financial year to a projected £22.6 million by the end of the current fiscal period. This dramatic increase is compounded by a surge in demand, with temporary accommodation placements rising from around 220 in April 2023 to 686 properties by September 2025. The council forecasts this number could climb to between 750 and 1,050 homes by 2028, further straining resources.
The financial burden is expected to worsen, with net expenditure on temporary accommodation potentially reaching between £29.1 million and £38.5 million by 2027/28. Council documents warn that these pressures necessitate "difficult long-term decisions" to mitigate the impact on finances.
Strategic Response to Market Opportunities
The new delegation of authority allows officers to make offers on properties subject to funding approval from the Housing Revenue Account capital programme. This change aims to prevent missed opportunities, such as a case in October last year when the council had to call an urgent leader’s decision meeting to submit a bid the following day. By empowering officers, the council hopes to "act at pace" and capitalize on emerging market opportunities that align with its strategic housing objectives.
Increasing council-owned stock is projected to significantly reduce reliance on temporary accommodation and curb the major cost rises from the nightly rented housing market, which are forecast to increase by 40 to 76 percent over the next three years. Properties purchased under this initiative will be rented at social or affordable rates, depending on grant conditions and prior use.
Broader London Housing Pressures
Harrow Council’s challenges reflect a wider crisis across London, where councils face increasing pressure to house households outside their boroughs, sometimes as far as Peterborough. The rising cost of private rented accommodation has made it increasingly difficult to secure affordable and sustainable options for those in need, leading to longer stays in temporary housing and additional strain on staff capacity.
To offset purchase costs, the council can seek funding from the Greater London Assembly’s Affordable Homes Programmes, which may help reduce borrowing expenses. Portfolio Holder for Housing, Councillor Mina Parmar, emphasized that this initiative is about "acquiring homes for long-term use" to grow the council’s quality housing stock.
Projected Cost Increases and Future Outlook
The council’s data reveals steep price rises in temporary accommodation over recent years. In 2023, the average nightly rate for a two-bedroom property was £351.55, which increased by 74 percent to £613.17 in 2025. These costs are projected to rise further to £1,012.10 by 2028, underscoring the urgency of the council’s new approach.
By delegating authority with appropriate consultation, Harrow Council aims to respond promptly and effectively to housing opportunities, demonstrating a robust business case to support its goal of reducing temporary accommodation dependency and managing financial risks in the face of London’s ongoing housing crisis.
