Newham is grappling with a severe temporary housing crisis, with a staggering 170% increase in households requiring temporary accommodation since 2013. The council's struggle comes as other London boroughs also face housing pressures, as shown in the chart below.

Change in property listings in London boroughs, comparing July 2023-July 2024 to the 2018-2019 average.
Change in property listings in London boroughs, comparing July 2023-July 2024 to the 2018-2019 average.

The issue was brought to the forefront at a Newham Council meeting on 14 July 2025, where a report from the Temporary Accommodation Task and Finish Group highlighted the escalating challenges and proposed potential solutions.

Key Factors Contributing to the Crisis

The report identified several key factors driving the crisis:

  • High Eviction Rates: Newham's eviction rate far exceeds the London average, leaving many families without stable housing.
  • Lack of Social-Rented Accommodation: A significant decrease in permanent lettings has further strained the availability of affordable housing.
  • Affordability of PRS Properties: The shrinking supply of private rented sector (PRS) properties affordable to those on Local Housing Allowance (LHA) is exacerbating the problem.
  • Impact of Landlords Leaving the Market: An increasing number of landlords are selling properties or re-letting them as temporary accommodation, reducing the pool of available long-term rentals. According to the Temporary Accommodation Task and Finish Group Report, this trend has accelerated since 2021, with approximately 45,000 rental properties sold in London without replacement between April 2021 and December 2023. A significant portion of these sales involved properties with lower average rental values.

Chart showing repossessed properties per 1,000 households in London boroughs, comparing 2023/24 data with London and the rest of England.
Chart showing repossessed properties per 1,000 households in London boroughs, comparing 2023/24 data with London and the rest of England. Newham has the highest rate.
Chart showing repossessed properties per 1,000 households in London boroughs, comparing 2023/24 data with London and the rest of England. Newham has the highest rate.

Proposed Solutions and Recommendations

To address this multifaceted crisis, the Temporary Accommodation Task and Finish Group put forward several recommendations:

  • Develop a 10-Year Plan: The council is urged to produce a detailed and costed 10-year plan to mitigate the impact of the housing crisis. The Temporary Accommodation Task and Finish Group Report recommends that this plan be completed by July 2026.
  • Lobby Government for Financial Support: The council should lobby the government to review financial support for councils and ensure Local Housing Allowance levels are sufficient.
  • Expand Property Acquisition and Leaseback Schemes: Actively working with partners to buy properties and expand leaseback schemes is crucial. The Temporary Accommodation Task and Finish Group Report suggests widening leaseback schemes to include supported housing projects, which often attract greater rental income.
  • Enforce Housing Standards: Cracking down on illegal evictions and failure to maintain properties to minimum standards is essential to protect tenants. The Temporary Accommodation Task and Finish Group Report recommends that the Newham PRS licensing team further crack down on illegal evictions and failure to maintain properties to minimum management and safety standards to ensure that the Renters' Rights bill is fully implemented and enforced.

Council's Response and Future Actions

The council acknowledges the seriousness of the situation and is taking steps to address the Best Value Notice issued on 8 May 2025, which highlighted concerns about the council's governance and financial stability. The council's response includes improving financial stability, working with the independent Improvement and Transformation Board, and ensuring the effectiveness of officer and political leadership. The Council's response to the Best Value Notice includes Improving financial stability as one of its key components, as detailed in the report Delivering Best Value For Our Residents.

As Councillor Lester Hudson, Chair of the Overview and Scrutiny Committee, noted, effectively prioritising and planning the work of scrutiny committees is essential to successful scrutiny.

The council is also working to improve relationships between members and officers, and is implementing a new member training programme. A cross-party working group has been established to support the positive development of culture and relationships.

While the challenges are significant, Newham Council is committed to delivering improvements and working closely with government and local partners to address the temporary housing crisis and ensure all residents have access to safe and affordable housing.