The Executive Decision meeting of Waltham Forest Council on Thursday 22 January 2026 was scheduled to discuss the adoption of ten-year leases for temporary accommodation. This measure is intended to address a significant financial pressure on the council related to the cost of temporary accommodation.

Temporary Accommodation - Adoption of Ten-Year Leases

The meeting was scheduled to consider the adoption of ten-year leases for temporary accommodation as a strategy to mitigate an overspend of over £14.4 million on this service. The report pack indicated that Waltham Forest Council currently houses approximately 1,700 households in temporary accommodation. A significant portion of these, around 480 properties, are managed through agent leases, and a further 220 are directly held leases, with most spanning three to five years.

Under current Department for Work and Pensions (DWP) rules, the council can only reclaim 90% of the 2011 Local Housing Allowance (LHA) rate in housing benefit subsidy for leases shorter than 10 years. This creates a subsidy gap of approximately £6,500 per property annually. However, leases exceeding 10 years (specifically, 10 years and a day) would make the council eligible to claim 100% of the rent charged, up to a reasonable amount equivalent to the current LHA.

The report pack suggested that extending lease terms to over 10 years for agent-managed leases could potentially save the council up to £3 million per year. It was recommended that the Deputy Leader (Housing and Regeneration) agree to the adoption of 10 year + 1 day leases for temporary accommodation and confirm their incorporation within the existing Dynamic Purchasing Scheme (DPS) for the provision of temporary accommodation.

The report highlighted that the number of households in temporary accommodation has risen by 89% in three years, from 900 in 2022 to over 1,700 in October 2025. In 2024/25, the council spent £20.41 million on temporary accommodation, resulting in an overspend of £10.2 million, with a forecast overspend of £14.4 million for 2025/26. A report by the LSE, commissioned by London Councils, indicated a £740 million temporary accommodation shortfall across London. Other London boroughs, including Greenwich, Hackney, and Enfield, have reportedly adopted similar longer lease approaches.

The proposals aimed to transition existing and new acquisitions into the 10 year + 1 day model. While this could unlock an estimated £3 million in revenue from the approximately 480 agent-managed leases, there was a noted risk that some landlords and managing agents might be unwilling to agree to extended terms, potentially impacting the achievable revenue. Properties would continue to be procured and managed through the existing DPS, which is shared with Enfield, Newham, and Redbridge Councils. Legal Services would draft and approve the lease terms, incorporating them into the standard DPS documentation. The report also mentioned that the rent charged to residents would remain unchanged, with the changes affecting the subsidy received by the council, not the residents' housing benefit claims. The report indicated that the leases would include break clauses allowing either party to end the arrangement with three months' notice.

The report pack also noted that longer leases are liable for registration with the Land Registry, incurring minor costs for the council, and that properties would need to be mapped appropriately in the NEC housing system to ensure correct subsidies are claimed. The option of doing nothing and maintaining existing short lease arrangements was considered but rejected due to the financial advantages of longer leases. The proposals were presented as supporting the council's homelessness and temporary accommodation strategies, including the Temporary Accommodation to Settled Homes Strategy 2025. No additional equality, diversity, or sustainability implications were identified.