Agenda item

This report seeks Cabinet approval to adopt a strategic approach to increasing the supply of Temporary Accommodation through long-term leasing arrangements (10 years or more) with private sector housing providers delivering new and refurbished accommodation at affordable rental terms along with delegated authority for officers to negotiate and enter into individual lease agreements in support of the Council’s Temporary Accommodation strategy.

Cabinet RESOLVED:

(1)    To approve the strategic approach to increasing the supply of Temporary Accommodation, in Brent and neighbouring areas, through long-term leasing arrangements (10 years or more) with accommodation providers delivering new and refurbished accommodation at affordable rental terms.

(2)    To delegate authority to the Corporate Director of Neighbourhoods and Regeneration, in consultation with the relevant Lead Member, the Corporate Director of Finance and Resources, and the Corporate Director of Residents and Housing Services, to:

(a)    Negotiate and agree on detailed Heads of Terms and enter into individual lease agreements with accommodation providers for Temporary Accommodation with terms of 10 years or more, in the best interests of the Council.

(b)    Delegate authority to approve the finances and budgetary adjustments to the Corporate Director of Finance and Resources, in consultation with the Cabinet Member for Finance and Resources.

(3)    Note the risks identified in paragraphs 3.2.18 to 3.2.22 of the report, including the potential impact on forecast savings or cost avoidance, and the steps proposed by officers to mitigate these risks.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Tuesday 14 April 2026

Councillor Donnelly-Jackson (Cabinet Member for Housing) introduced a report from the Corporate Director Residents and Housing Services seeking approval to adopt a strategic approach to increasing the supply of Temporary Accommodation through long-term leasing arrangements (10 years or more) with private sector housing providers delivering new and refurbished accommodation at affordable rental terms.

In introducing the report, Councillor Donnelly-Jackson began highlighting the clear and strategic approach to increasing the supply of Temporary Accommodation that the report set out in a particularly challenging context. In detailing those challenges, she advised that the demand for housing support had risen significantly over the past 2 years, with approximately 170 households approaching the Housing Need service each week, which she attributed to rising rents, shortages of affordable housing, and an increase in the number of residents facing complex and acute needs. In outlining the challenges, she recognised that Brent was not alone in facing pressures in relation to housing need demand given that London now accounted for over half of all homeless households in England and research suggesting that there was a significant Temporary Accommodation shortfall against a backdrop where the cost of accommodation in London had risen by 75% over the last 5 years. She emphasised that the current reliance on nightly accommodation was both costly and uncertain, exposing the Council to market volatility and placing considerable pressure on Council’s finances, whilst often failing to provide the stability households needed.

As a way forward, Councillor Donnelly-Jackson advised Cabinet of the proposed new approach, moving towards long-term leasing arrangements of 10-years or more, which would enable the Council to secure a reliable supply of high-quality accommodation in Brent and neighbouring areas and achieve better value for money through reduced costs over time, whilst also improving the standard and suitability of accommodation available to vulnerable households.

As well as the benefits to those in housing need, Councillor Donnelly-Jackson detailed the financial benefits of the 10-year leasing scheme, which allowed the Council to claim back greater housing subsidy, as set out in paragraph 6.4 of the report, and which provided the Council certainty of supply, certainty of costs, and protection from market fluctuation. Further benefits from the model were detailed in relation to the wraparound support available for those being placed in accommodation through Civic Nest and through the various standards required to support these residents, including for properties to meet the Decent Home Standard.

In summing up, Councillor Donnelly-Jackson felt that the approach outlined allowed the Council to ensure both fiscal responsibility and better outcomes for residents, which she saw as a practical and necessary step in responding to the housing pressures being faced by the Council.

In welcoming the report, members recognised Temporary Accommodation as one of the highest cost pressures currently faced by the Council and therefore expressed support for the approach outlined in relation to the stability and quality that would be provided for residents whilst also demonstrating the prudent way the Council was delivering its financial responsibilities. It was recognised that the approach linked with the Council’s priorities and commitments made through the borough plan and budget setting and provided good benefits to individuals and families in housing need.

Having welcomed the benefits of the approach in terms of value for money, cost certainty, and improved housing conditions and stability for vulnerable households placed in Temporary Accommodation, Cabinet therefore RESOLVED:

(1)       To approve the strategic approach to increasing the supply of Temporary Accommodation, in Brent and neighbouring areas, through long-term leasing arrangements (10 years or more) with accommodation providers delivering new and refurbished accommodation at affordable rental terms.

(2)       To delegate authority to the Corporate Director of Neighbourhoods and Regeneration, in consultation with the relevant Cabinet Member, the Corporate Director of Finance and Resources, and the Corporate Director of Residents and Housing Services to:

(a)       Negotiate and agree on detailed Heads of Terms and enter into individual lease agreements with accommodation providers for Temporary Accommodation with terms of 10 years or more, in the best interests of the Council.

(b)       Delegate authority to approve the finances and budgetary adjustments to the Corporate Director of Finance and Resources, in consultation with the Cabinet Member for Finance and Resources.

(3)    To note the risks identified in paragraphs 3.2.18 to 3.2.22 of the report, including the potential impact on forecast savings or cost avoidance, and the steps proposed by officers to mitigate these risks.