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 lease 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, bringing them back into Tower Hamlets. It was also stated that the proposed lease terms were expected to deliver 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 a shift in the private rented sector towards more expensive nightly paid arrangements. The Housing Options and Homelessness Service has been working to improve services and minimise costs, moving away from hotels and bed and breakfasts towards more traditional temporary accommodation.

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 agreement. As the site owner was unable to find a Registered Provider partner, they 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 report stated that the business case for this proposal was weighted towards improving service provision by exclusively using these new homes to house vulnerable households currently placed out of the borough. It was recommended that the Mayor agree to the council entering into the lease arrangement with Kedma Yama Caroline Limited (superior landlord) and KYC 33 Caroline Limited (Landlord). Additionally, it was recommended that authority be delegated to the Director of Housing Options and Homelessness to agree the contractual start date and any minor contractual issues.

The report indicated that an equalities impact screening assessment had been undertaken and found no negative equalities impacts, suggesting the proposed changes would be positive. It also noted that the council's Temporary Accommodation placement policy operates in line with the Public Sector Equality Duty¹, with affordability considered for all placements. The report further stated that implementing this proposal would support the council in tackling its significant overspend on temporary accommodation.