Croydon Council is considering implementing compensation clauses in contracts for out-of-borough housing placements. These clauses would be triggered if providers fail to deliver the agreed number of properties, aiming to protect the council from potential shortfalls in housing provision.
The move was discussed at a recent Scrutiny & Overview Committee meeting on Tuesday 22 July 2025, where the committee reviewed recommendations from the Homes Sub-Committee meeting held on 19 June 2025. The Homes Sub-Committee's recommendations, included in the Appendix 5 - Homes 19-06-25 Recommendations document, specifically included exploring the inclusion of compensation clauses in out-of-borough contracts if providers fail to deliver the agreed number of properties.
The Scrutiny & Overview Committee, including Councillor Leila Ben-Hassel, Councillor Alasdair Stewart, Councillor Ellily Ponnuthurai, Councillor Mario Creatura, Councillor Mark Johnson, and Councillor Eunice O'Dame, were asked to approve the recommendations made by its sub-committees for submission to the Cabinet for their consideration.