Wandsworth Council to Implement 10-Year Leases for Temporary Homes to Cut Costs and Improve Quality

Wandsworth Council to Implement 10-Year Leases for Temporary Homes to Cut Costs and Improve Quality

Wandsworth Council is set to implement new 10-year leasing agreements for temporary accommodation in a bid to reduce costs and improve quality.

The Housing Overview and Scrutiny Committee met on Thursday, October 1, 2026, to discuss a proposal for a new leasing model for temporary accommodation. This strategy aims to secure properties through minimum 10-year-plus-one-day leases with private providers, moving away from expensive nightly-paid arrangements.

The council anticipates that this approach will lead to greater cost certainty, improve the quality of accommodation for residents, and enhance financial sustainability. A key benefit highlighted is the ability to charge Local Housing Allowance (LHA) rates, which are more favourable than the outdated temporary accommodation subsidy rates.

Financially, the new model is projected to offer savings of approximately £6,000 per unit per year compared to current nightly-paid accommodation. The council aims to balance its temporary accommodation supply over the coming years, with one-third from long-term leases, one-third council-owned, and one-third from more flexible arrangements. This phased implementation is expected to cover one-third of the council's temporary accommodation supply over a five-year period. These 'flexible arrangements' will include short leases and aim to reduce reliance on nightly-paid accommodation, allowing for greater flexibility as demand fluctuates.

During the meeting, councillors discussed potential risks, including changes to Department for Work and Pensions (DWP) loopholes and maintenance liabilities. The council is concerned that if these loopholes are closed, it could revert to less favourable temporary accommodation subsidy rates. However, officers noted this is a similar risk to other potential government interventions, and the council would not be in a worse financial position than it is currently if this scenario occurred. The council plans to scale up the model slowly in stages and scrutinise each individual lease agreement.

The proposal is part of a broader strategy to address the spiralling costs of temporary accommodation, which have risen from £5 million a year to nearly £40 million a year. Councillor Conner, Cabinet Member for Housing, stated that the council has a moral imperative to deliver homes and that this new model is a crucial step in tackling the housing challenges within the borough.

Beyond cost savings, residents can expect tangible improvements in the quality and stability of their temporary accommodation. The new model aims to provide high-quality TA units and improve conditions and stability for vulnerable households placed in TA, offering greater control over standards compared to current nightly-paid accommodation.

The council will ensure quality improvements are maintained through continuous contract management and by building in provisions for this during lease negotiations. The suitability of properties will be assessed based on legal requirements and a code of guidance, considering factors like mobility needs and the presence of babies.

Each leasing arrangement will undergo rigorous assessment by an internal Governance Board, comprising representatives from legal, finance, procurement, and revenues and benefits departments. This board will assess each arrangement for its financial viability and sustainability, ensuring it is fit for purpose and offers value for money. The council will also consider repair, maintenance, and obligations on each unit leased during lease negotiations. While the exact division of responsibility is not explicitly detailed, the council acknowledges that under these longer-term arrangements, they do take that on in contrast to shorter-term nightly-paid arrangements.

Further details on the council's housing strategy can be found in the Public reports pack for the Housing Overview and Scrutiny Committee meeting on October 1, 2026. Public reports pack 01st-Oct-2026 19.30 Housing Overview and Scrutiny Committee