Harrow Council is urgently bidding to acquire 140 newly built homes within the borough to address the growing housing crisis and reduce reliance on temporary accommodation.

The decision, made at a Portfolio Holder Decision Meeting on Tuesday 21 October 2025, aims to tackle rising costs and increasing demand for temporary housing. Councillor Paul Osborn, Leader of the Council, approved the recommendations, delegating authority to the Strategic Director for Housing and Regeneration to appoint an agent to support the bid, which is required by the next day.

The council's report highlighted the urgency of the situation, stating that:

Current forecasting projects an increase in cost to the current nightly rented model of between 40.5% and 76% through the next three financial years. The cost of accommodation through nightly paid models continues to rise, while demand for settled housing support is steadily increasing.

The homes are scheduled to be ready for occupation immediately after the transaction is completed. The Supplemental Agenda for the meeting confirms the target of 140 homes.

The acquisition of homes will be funded through the Housing Revenue Account (HRA), with the council also seeking funding from the Greater London Authority's (GLA) Affordable Homes Programme (AHP) to offset purchase costs. The council plans to manage the properties independently, subcontracting maintenance and resident services using existing policies and contracts. This ensures services are delivered to a high standard and meet tenants' needs.

Several alternative options were considered, including investment in modular housing and acquisition/lease through a community benefit society, but direct acquisition was favoured.

The report also outlines several risks and mitigations associated with this acquisition strategy:

  • Unidentified maintenance costs: Mitigated by purchasing a two-year insurance agreement and setting aside additional funds for maintenance.
  • Proposal is financially unviable: Mitigated by detailed financial analysis showing long-term revenue benefits.
  • GLA grant not secured: Mitigated by financial modelling that includes scenarios with and without grant funding.
  • Market value assignment: Mitigated by commissioning an independent red book valuation and full building survey.
  • Operational capacity: Risk that Housing Services may not have sufficient capacity to manage new units effectively.

A report will be submitted to cabinet and full council to update on the terms of the bid and the HRA's five-year capital programme, respectively.

The recommendations approved include:

  • Approving the submission of a bid and purchase in accordance with the range set out in confidential Appendix 1 to the officer's report.
  • Delegating authority to the Strategic Director for Housing and Regeneration to appoint an agent to support the bid.
  • Noting that a report will go to Cabinet to note terms of the bid and business case in confidential appendix 1 to the officer's report and approve all necessary steps required to successfully complete.
  • Noting that subject to a successful bid, a report will go to Full Council updating the HRA's 5-year capital programme to reflect the agreed price and approve any successful grant application in line with financial regulations.

Note: Specific financial details, including the estimated total cost and the amount of funding sought from the GLA's Affordable Homes Programme (AHP), are outlined in the confidential Appendix 1 to the officer's report.