The Housing & Homelessness Scrutiny Commission met to discuss the Homelessness and Temporary Accommodation Supply Transformation Programme, reviewing its progress over the past two years. The Commission also agreed its work programme for the upcoming municipal year.

Homelessness and Temporary Accommodation Supply Transformation Programme

The Commission received a comprehensive update on the Homelessness and Temporary Accommodation (TA) Supply Transformation Programme, which aims to address the rising demand for homelessness support and improve the supply of temporary accommodation. The programme, established two years ago, has expanded to encompass demand management and income generation.

Demand Work Stream: This stream focuses on preventing homelessness by intervening earlier in residents' journeys. An independent service review identified key areas for improvement, including upstreaming and triaging services, managing resident expectations, better utilisation of the private rented sector (PRS), and targeted move-on strategies from temporary accommodation. The Council is redesigning its homelessness front door, investing in staff training, and strengthening partnerships with voluntary sector organisations to reach vulnerable residents before they reach crisis point. The Director of Housing Strategy & Homelessness, Alex Clarke, explained that a 29% decrease in successful prevention and relief outcomes since 2025/26 was largely due to external market factors, particularly the impact of the Renters' Rights Act, which has led to landlords exiting the market or becoming reluctant to rent to low-income households. The Council is reviewing its landlord incentive schemes to make them more attractive.

Supply Work Stream: This stream aims to increase the supply of cost-effective temporary accommodation. The Council is working to reduce its reliance on expensive, low-quality nightly-paid accommodation by expanding its portfolio of council-owned properties and long-leasehold interests. Due to limited supply within Hackney, the Council is actively exploring acquisitions and leases in neighbouring boroughs with good transport links. A significant capital investment of approximately £145 million is allocated for 2026/27 to deliver cost avoidance benefits compared to nightly-paid accommodation. This includes acquiring properties through schemes like the Local Authority Housing Fund (LAHF) and the Council House Acquisition Programme (CHAP), with plans to add further units within the borough.

Income Work Stream: This stream focuses on maximising income from central government by reducing housing benefit subsidy loss. The current system caps reimbursement at 90% of 2011 Local Housing Allowance (LHA) rates, creating significant deficits. The Council is nearing the finalisation of legal agreements to transfer temporary accommodation leases into its wholly-owned Housing Company. This move is intended to legally bypass or reduce subsidy loss by enabling the recovery of full 2024 LHA costs. The Assistant Director Benefits & Homelessness Prevention, Lee Georgiou, noted that property acquisitions and lease structures are also being aligned to maximise central government subsidy capture.

Outcomes and Risks: The programme projects total savings of £11.6 million across the General Fund and Housing Revenue Account (HRA) over the next three years. Key risks identified include market volatility, insufficient new TA supply, capacity constraints within delivery services, and potential changes to central government regulations. The Commission heard that the average wait time for a two-bedroom property in temporary accommodation could be between 10 to 12 years, highlighting the urgency of the programme's objectives. The Council is committed to ensuring the quality of temporary accommodation through regular inspections and by retaining control over maintenance and repairs.

Quality of Temporary Accommodation: Concerns were raised about the quality of some privately owned nightly-paid accommodation. The Council stated that it directly manages contracts with providers and works to ensure properties meet required standards. Where providers fail to meet contractual obligations, families are moved to alternative accommodation, and the provider is removed from the approved supplier list. The Assistant Director Benefits & Homelessness Prevention, Lee Georgiou, confirmed that the Council has social workers embedded within the Benefits & Homelessness Prevention team and works closely with adult and children's social care, as well as other public bodies, to support vulnerable individuals.

Out-of-Borough Placements: Approximately one-third of Hackney households in temporary accommodation are housed outside the borough, a figure the Council aims to reduce. The Director of Housing Strategy & Homelessness, Alex Clarke, stated that the vast majority of placements are within Greater London, with only 133 households placed outside London, often due to risk factors. Research unequivocally shows the negative impacts of temporary accommodation on family wellbeing, and the Council's priority is to help households move into settled accommodation as quickly as possible.

Housing & Homelessness Scrutiny Work Programme 2026/27

The Commission agreed its draft work programme for the 2026/27 municipal year. The programme was developed following consultation with Commission members, non-executive councillors, cabinet members, senior officers, the Resident Liaison Group, and local residents. Key topics to be scrutinised include the Gypsy, Roma and Traveller Accommodation, Advocacy & Support programme, Boat Dweller Advocacy & Support, the Housing Services Improvement Plan, and the Housing Revenue Account Budget Monitoring. The Commission also plans to include more voices from affected communities and residents in its future meetings.

Confirmation of Name & Remit Changes

Members formally noted the constitutional changes agreed at Full Council on 28th July 2026. The Commission's name has been changed from the Living in Hackney Scrutiny Commission to the Housing & Homelessness Scrutiny Commission. Its remit has also been expanded to encompass housing strategy and development, council housing, housing delivery, private sector housing and housing affordability, relationships with registered providers, rough sleeping and homelessness prevention, and residential planning.

Declarations of Interest

Councillor Sarah Young declared that she is employed by Anchor Housing.

Minutes of the Previous Meeting

The draft minutes of the previous meeting held on 6th July 2026 were agreed as an accurate record.