Westminster City Council is set to purchase a newly constructed freehold building in the HA0 area to provide temporary accommodation for those in need, as part of a broader strategy to combat homelessness in the borough.
The decision was made during a Cabinet meeting on Monday, 14 July 2025, where members discussed a report outlining the proposed acquisition. The Cabinet approved the principle of acquiring the property for up to £27.5 million, alongside additional capital expenditure to bring the property up to a reasonable standard for occupation.
The acquisition aims to address the growing problem of homelessness within Westminster, build resilience into the council's temporary accommodation stock, and mitigate the escalating costs of emergency accommodation. The report pack states that the acquisition is part of a wider council strategy to address the growing problem of homelessness within Westminster, to build resilience into the council's temporary accommodation estate, and to mitigate the escalating costs of addressing homelessness through the use of emergency accommodation. The report pack also notes that the Executive Director of Finance and Resources will be delegated authority to agree the commercial terms of the acquisition, subject to all necessary due diligence.
This move aligns with the council's Fairer Westminster Delivery Plan, which commits to increasing the amount and quality of affordable housing available in the City. The report also referenced the Capital Strategy Report approved by the Council on 5 March 2025, which confirmed a budget of £253.8m for Temporary Accommodation acquisitions between 2024/25 and 2026/27.
The need for such measures is underscored by the increasing demand for temporary accommodation across London. Westminster has seen a 30% increase in households approaching the Council for housing assistance compared to the previous year. Factors contributing to this rise include high rent levels, a shortage of social housing, and the ongoing cost-of-living crisis.
While the priority remains sourcing properties within Westminster, the council recognises the need to look more widely within the Greater London area to meet demand. Any properties acquired outside the borough will adhere to the Temporary Accommodation Placement Policy and the Suitability Order 2012, ensuring they meet the needs of residents.
