The Place Overview and Scrutiny Subcommittee met to discuss the progress of the New Housing Allocation Scheme and the challenges of emergency temporary accommodation. Significant delays were reported in the implementation of the new housing allocation scheme due to contractor issues, leading to a surge in applications and the introduction of a working household contribution to address potential disadvantages for employed residents. The committee also heard about the ongoing pressures on temporary accommodation, driven by increased homelessness demand and a decline in the private rented sector, with the council exploring various initiatives to increase supply and reduce reliance on costly hotels.

New Housing Allocation Scheme Progress Report

The subcommittee received an update on the New Housing Allocation Scheme, which went live in September 2025. The implementation faced considerable delays due to issues with the contracted provider, Capita, and later MRI Software. These delays pushed the go-live date from November 2024 to September 2025, necessitating a full reapplication process for existing applicants.

Following the scheme's launch, there was a significant surge in applications, with over double the usual monthly volume received in the first two weeks. This led to a backlog, with 3,464 applications received by February 2026. To manage this, assessment capacity was increased, and high-priority applications (70 points and above) were prioritised.

A working household contribution was introduced in March 2026 to provide an additional points uplift for eligible applicants in sustained paid employment, addressing concerns that some working households might be disadvantaged under the new points-based system. The scheme is now live, with high-priority applications assessed and work ongoing to assess lower-priority applications. Continuous monitoring is in place, with a target to be in a more comfortable position by April or May 2026.

Concerns were raised about communication regarding the delays, with applicants informed in August 2025 of the transition and in November 2025 about specific delays due to backlog. Engagement has primarily been on a case-by-case basis or via the website.

Despite the delays and management issues, no unbudgeted financial pressures arose due to negotiations with the contractor, Capita, which resulted in reduced charges. MRI Software acquired Capita, taking over the project without loss of data or structural damage to the implementation process.

The report also addressed concerns about the implications and risks for vulnerable residents. Mitigation measures include accelerated routes for high-priority cases, such as those with high medical needs or in long-term temporary accommodation. Special needs panels are used to fast-track cases, and safeguards are in place for those posing serious risks. The working household contribution aims to address inequalities and make these applicants more competitive.

While the scheme is live and progress is being made, the council is not yet at a point of normality, with weekly monitoring continuing. A formal scheme review is recommended 12 months post-implementation.

Emergency Temporary Accommodation in Havering and the Lack of Supply

Darren Alexander, Assistant Director of Housing Demand, presented a report on the significant pressures on temporary accommodation (TA) in Havering, largely driven by a 100% surge in homelessness demand since 2020 and the collapse of the private rented sector. TA costs are now the single largest growing risk to the Housing General Fund, with forecast overspends exceeding £1.18 million in 2025/26.

The council has seen a dramatic increase in TA placements, particularly in hotels and nightly-charged accommodation. The decline in Private Sector Lease (PSL) properties, with over 400 lost since 2019/20, is a major factor, with handbacks outpacing new TA acquisitions. The primary reasons for homelessness remain family and friends exclusion, private rented sector evictions, and domestic abuse.

To address the supply shock, Havering is pursuing several initiatives, including private equity finance, office-to-residential conversions, pension fund property investments, and new development opportunities. A pipeline of 1,056 units is being secured, with projects like the Family Welcome Centre (74 units, May 2026) and modular housing schemes (18 units, April 2026) contributing to the supply. The aim is to exit nightly paid accommodation altogether by 2028/29.

The report detailed the financial pressures, with combined TA gross spend exceeding £14 million annually. The council is working to secure a supply of properties that meet the need for two, three, and four-bedroom homes, as these are in highest demand.

Discussions also touched upon the use of Royal Jubilee Court, which was initially set for 18 months but has been extended due to supply shortages. Households there will be moved to modular housing schemes. The psychologically informed environment approach is being implemented in TA to support residents experiencing crisis.

The committee questioned the viability of borrowing for large developments versus purchasing bulk properties, and the council's engagement with developers on Section 106 agreements to ensure family accommodation is provided. The audit assurance report highlighted the need for continued work on budget control and risk mitigation.

Voids Overview

Ian Saxby, Assistant Director of Housing Property & Assets, presented an overview of the council's voids performance, highlighting that Havering is performing strongly, ranking as the third-best performing council in London for voids. A total of 620 property voids and 354 garage voids were processed in the 2025/26 financial year up to February 2026.

Voids are categorised as V1 (minor works, up to 11 days, under £3.5k), V2 (major works, up to 19 days, £3.5k-£16.5k), and V3 (long-term voids, over 70 days, over £16.5k). General Needs and TMO voids averaged 24.96 days key-to-key, with 69% falling into the V2 category. Sheltered voids averaged 13.83 days for works, but a further 38 days were noted between repair completion and final letting due to scheme managers handling lettings. Hostel voids predominantly required minor works (86% V1), with short turnaround times. Buyback properties, however, often required extensive works, with over half (55%) falling into the V3 category, leading to longer turnaround times.

The report detailed compliance with Awaab's Law, stating that all void properties meet lettable standards and are compliant with the law before new tenants move in. While London peers have not yet published Awaab's Law data, Havering's manual reporting shows high compliance rates.

Members raised questions regarding the efficiency of key safe fitting, the gap between repair completion and final letting, the involvement of Occupational Therapists (OTs) in void timelines, and the process for handling property refusals. The management response indicated that while improvements have been made, further steps are being taken to reduce turnaround times, including exploring parallel working, early OT engagement, and a dedicated OT resource for voids. The council is also reviewing its IT systems to improve data visibility and workflow efficiency.

The report concluded that Havering's void performance is top quartile and the council is striving for continuous improvement to become the best in London. Recommendations were made to consider returning the report to scrutiny for a formal review 12 months post-implementation.