The Cabinet of Hackney Council met on Tuesday 22 September 2026 to discuss capital updates and property acquisitions. The meeting resulted in the approval of several key decisions aimed at increasing the provision of temporary accommodation for homeless residents.

Capital Update and Property Acquisitions

The Cabinet approved a series of measures to acquire or lease new temporary accommodation units. This included the approval of an acquisition for 319 temporary accommodation units, funded from existing budgets, and a further acquisition to provide 58 temporary accommodation units, also funded from existing budgets. Additionally, a 10-year lease for a 71-unit single-person portfolio was approved. These decisions are intended to address the significant shortage of temporary accommodation within the borough, which has led to increased reliance on expensive nightly-paid annexes and out-of-borough placements.

The report highlighted that the Council's Benefits and Homeless Prevention Service is facing a critical shortage of suitable accommodation. The proposed acquisitions aim to provide high-quality, stable, and self-contained temporary housing, offering a better and safer living environment for homeless households. By securing these units, the Council will fulfil its statutory obligation to house homeless families, while also aiming to lower overall expenditure and mitigate potential price hikes associated with nightly-paid accommodation.

The meeting also noted the Quarter 1 Capital Monitoring for the year ending 31 July 2026. The Cabinet approved the carry-forward of expenditure plans and associated resources from the 2025/26 financial year to 2026/27, totalling £188,226,000. Furthermore, the re-profiling of budgets was approved, with significant amounts being transferred between financial years to align with delivery schedules. Capital adjustments to the budgets were also noted.

The rationale for these decisions was to ensure the delivery of schemes within the Council's approved Capital programme. The report emphasised the significant need to increase temporary accommodation provision for Hackney's residents facing homelessness and to ensure the Council meets its duty of care. The acquisitions are expected to provide 448 accommodation units in total, helping to reduce the Council's net expenditure on nightly-paid providers and ensuring a decent quality of accommodation.

The report also detailed the financial implications, noting that the revised gross capital spending programme for 2026/27 would be £501.686m. The acquisitions were deemed financially viable, operating on a cost-avoidance basis by replacing expensive nightly-paid accommodation with more cost-effective, Council-controlled options. The lease acquisition for the 71-unit portfolio was highlighted as a way to minimise net budget losses by providing a cheaper operational model than market-rate nightly-paid units, and to close the subsidy gap by claiming under updated Local Housing Allowance (LHA) rates.

The report also included detailed information on the Quarter 1 Capital Monitoring for 2026/27, outlining variances and reasons for delays across various directorates and programmes, including estate regeneration, housing supply, and new homes. Significant re-profiling of budgets into future financial years was noted across multiple projects due to anticipated delays in 'start on site' timelines, contractor issues, and external factors.