The Mayor's Executive Decision Making committee was scheduled to consider a proposal to lease properties for temporary accommodation to minimise costs. This report outlines the details of the proposed leasing arrangement.

Temporary Accommodation Cost Minimisation – Leasing Arrangement for 27-33 Caroline Street, London, E1 0JG

The committee was scheduled to discuss a proposal to enter into a lease arrangement for 16 new homes at 27-33 Caroline Street, London, E1 0JG for use as temporary accommodation. The report indicated that this arrangement was intended to house vulnerable households currently placed outside the borough back within Tower Hamlets, while also aiming to achieve cost savings compared to existing out-of-borough provisions.

The report highlighted the ongoing homelessness crisis in London and its significant impact on the council's budget, particularly concerning the rising costs of renting private homes for temporary accommodation. It noted that the council has been working to reduce its reliance on more expensive options like hotel rooms and bed and breakfasts, moving towards improved quality placements. The proposed lease at Caroline Street was presented as a step in this direction, offering higher quality accommodation within the borough and facilitating savings by moving households out of more expensive nightly-paid arrangements.

The report stated that the properties at 27-33 Caroline Street are part of a new development where 16 homes were originally intended to be provided as affordable housing under a Section 106 legal agreement. As the site owner had not found a Registered Provider partner, they had agreed to make a payment in lieu to the council. However, discussions also led to the proposal for the council to lease these 16 homes for temporary accommodation.

The recommendations scheduled for consideration included agreeing to the lease arrangement with Kedma Yama Caroline Limited and KYC 33 Caroline Limited, and delegating authority to the Director of Housing Options and Homelessness, Jennifer Wynter, to finalise contractual details. The report indicated that the decision was considered a Key Decision due to the expenditure exceeding £1 million and that special urgency procedures were proposed. Appendix 1, containing confidential details of the business case and proposed terms, was exempt from publication.

The report also mentioned that an equalities impact screening assessment had been undertaken, concluding that the proposed changes would have a positive impact on affected households, with no negative equalities impacts identified. The council's Temporary Accommodation placement policy is operated in line with the Public Sector Equality Duty¹, and affordability is considered for all placements.