Bromley Council Grapples with Overspending on Temporary Accommodation
Bromley Council is facing a projected net overspend of £2.461 million on controllable expenditure, primarily driven by rising costs in temporary accommodation. The issue was brought to the forefront during a meeting of the Renewal, Recreation and Housing Policy Development and Scrutiny Committee on Tuesday 18 November 2025, where budget monitoring for the 2025/26 financial year was discussed.
The budget monitoring report highlighted that the main areas contributing to the overspend were Temporary Accommodation, Planning, and Building Control, while income from Community Infrastructure Levy and Land Charges fell short of targets. Specifically, the Budget Monitoring 2025/26 report details overspends in Temporary Accommodation (£553k), Planning (£231k) and Building Control (£199k). Income shortfalls were noted in Community Infrastructure Levy (£1,371k) and Land Charges (£39k). The report noted a projected net overspend of £2.461 million on controllable expenditure.
The council is actively working to mitigate the overspending, with a focus on homelessness prevention and increasing the supply of affordable housing. However, challenges persist, including the withdrawal of housing providers from the temporary accommodation market and competition from other local authorities and the Home Office. The Budget Monitoring 2025/26 report attributes the rising costs and reliance on nightly paid placements to the withdrawal of housing providers from the temporary accommodation and private rented market, as well as pressure from other local authorities and the Home Office.
According to the report, the average weighted net cost of all placements has risen significantly since Quarter 1 2023/24, increasing by £6,265 per year per placement, from £7,650 to £13,915. A temporary accommodation taskforce has been established to address the rising costs, focusing on negotiating lower rates, facilitating moves to more affordable temporary accommodation, and preventing non-occupancy.
The Housing team is engaged in a number of projects to support the smooth running of the service and ensure that Council resources are effectively managed. These include a Temporary Accommodation Taskforce; which is reviewing the cost effectiveness of placements and helping to negotiate lower rates or move clients into more affordable temporary accommodation or settled homes. Alongside this is a Non-Occupancy Task Force, in conjunction with the Greenwich fraud team, which is ensuring that all placements are being appropriately utilised and action taken if there are areas for concern. The HPR Portfolio Plan Update details the work of this task force. These projects have had a positive impact in initially slowing the rate of growth of Nightly Paid Temporary Accommodation placements, to reducing the number of placements by the end of the quarter.
To combat the reliance on temporary accommodation, the council is also pursuing a three-pronged approach: preventing homelessness, ensuring full utilisation of available accommodation, and increasing the supply of alternative housing solutions. This includes securing 300 units of leased accommodation as a direct alternative to nightly paid accommodation.
Despite these efforts, the council faces ongoing challenges in managing the demand for temporary accommodation and controlling associated costs. The situation requires close monitoring and proactive measures to ensure that the council can meet its statutory obligations while remaining financially sustainable.
