Merton Council is set to purchase properties to be used as temporary housing in an effort to address the growing housing crisis in the borough. The decision was made during a Cabinet meeting on June 23, 2025, where officials discussed a report on acquiring temporary accommodation.
The council's move comes in response to a significant increase in the number of households requiring temporary accommodation, which has risen from 350 in 2023 to 700 in 2025, with an average increase of 15 households per month. This surge has placed considerable financial strain on the council, with net costs for temporary accommodation escalating from £1,919,535 in 2022/23 to £7,611,752 in 2024/25.
, following a Memorandum of Understanding signed with the Ministry of Housing, Communities and Local Government (MHCLG) in August 2024. A revenue budget of £56,113 from LAHF will contribute to acquisition costs. The Cabinet delegated authority to the Executive Director of Housing & Sustainable Development and the Executive Director for Finance and Digital to acquire properties and apply the funding under the conditions of the LAHF.
The council intends to purchase properties within the borough to help residents maintain connections with their community. Procurement exercises will be undertaken to secure managing agents and repair and maintenance operators for the properties. This initiative aims to alleviate the council's reliance on third-party providers and ensure quality temporary accommodation for homeless households, as required by the Housing Act 1996.