Sutton Council is considering converting a block of shared ownership housing at Beech Tree Place into affordable rent in response to the growing housing crisis.

The Housing, Economy and Business Committee discussed the proposal to change the tenure of Block D at Beech Tree Place from shared ownership to affordable rent at their meeting on 25 November 2025. The plan aims to increase the availability of properties for residents in temporary accommodation.

The conversion is projected to increase the Housing Revenue Account (HRA) capital requirement by £4.89 million. This increase will be reviewed by the Strategy and Resources Committee on 8 December for final approval1. The council also anticipates financial savings to its general fund as a result of the conversion, although the specific amount was not disclosed during the meeting2.

Adam Tucker explained that the council is responding to the shocking crisis of temporary accommodation numbers. He stated that converting the 35 homes in Block D to rented accommodation would provide an enhanced pool of properties for us to move people on from temporary accommodation to. Tucker also noted there would be a financial benefit to the council, with savings to the general fund.

While the change would increase the Housing Revenue Account (HRA) capital requirement, Tucker assured the committee that the shift would improve the HRA's position over its lifespan.

Councillor Webster supported the measure, stating that she supports any measures that we can take to get residents out of temporary accommodation and into a more permanent and secure form of accommodation .

Councillor Hicks raised concerns about the higher standard of the Beech Tree Place properties compared to other council housing. He questioned whether there would be differential rental costs and how the council would decide who would be placed in the properties. Tucker responded that rents are governed by the GLA and are set at London Affordable Rent levels. He added that the council is mindful of the standard of the properties and will work closely with the allocations team to ensure fair and efficient allocation3. The council has stated that returning residents are absolutely delighted with their homes.

Councillor Clarke suggested that properties with en-suite bathrooms could be prioritised for people with medical needs. Tucker agreed that this was a good point and would be considered during the allocation process.

The committee approved the change of tenure for Block D at Beech Tree Place to affordable rent. They also noted that the resulting increase in the HRA borrowing requirement would be referred to the Strategy and Resources Committee for final approval.

  1. Adam Tucker noted that this will be referred to the Strategy and Resources Committee for final approval. He says, to note that the resulting increase in HRA borrowing requirement of 4.89 million will be referred to the strategy and resources committee for final approval.  ↩

  2. Adam Tucker states, There is also a financial benefit to the council of doing this as well, in that there is a saving to the general fund, not the HRA, but it's just to be clear there's a saving in that.  ↩

  3. Councillor Clarke raised the point of considering people with medical needs who require extra bathroom facilities. Adam Tucker responded, That's a really good point and thank you. And all of those things are the things that we will be considering very carefully with the allocations team.  ↩