Kingston Council is set to establish a wholly-owned company, a Special Purpose Vehicle (SPV), to address the growing housing crisis and reduce reliance on expensive temporary accommodation. The decision was made at a Corporate and Resources Committee meeting on Thursday 27 November 2025, where councillors approved the formation of the Company Limited by Guarantee (CLG).
The move aims to support the council in discharging its housing duty and alleviate pressures caused by the increasing demand for temporary accommodation across the country. Subject to approval being granted by the Committee, the Council would look to form the CLG in January 2026 and seek to commence the acquisition of properties with a target of having the first property(ies) being acquired and tenanted by Spring 2026, according to the Temporary Accommodation - Special Purpose Vehicle SPV report.
The council will borrow £63.1m from the Public Works Loan Board to purchase 150 homes, which will then be leased to the CLG. The Executive Director of Place, in consultation with the Portfolio Holder for Housing, will approve the acquisition of these 150 properties and their subsequent leasing to the CLG, as detailed in the Temporary Accommodation - Special Purpose Vehicle SPV report. The CLG will, in turn, lease the properties to homeless households nominated by the council at rents aligned with the prevailing Local Housing Allowance rate. This ensures affordability for tenants, whether through earned incomes or benefits.
The council anticipates significant cost avoidance over the long term. The report pack for the meeting stated that, over 40 years, the model is forecast to generate £278m in cumulative cost avoidance compared with current temporary accommodation costs, a Net Present Value of £47m with a retained asset value of £100m.
The July 2024 meeting of the Corporate and Resources Committee approved a Temporary Accommodation (TA) Acquisitions Strategy for the Borough which sought to secure council owned property to improve outcomes for local people who are in need of TA, reduce the council's dependency on expensive nightly paid accommodation (hotels, bed and breakfasts) and deliver better value for money.
The Board of Directors for the Special Purpose Vehicle Company Limited by Guarantee will consist of the Director of Housing, the Director of Finance, and the Director of Property and Projects.
This initiative is part of a broader strategy to tackle homelessness in the borough. The council has already been acquiring properties through the General Fund, with plans to acquire 50 homes by the end of December 2025.
The Temporary Accommodation - Special Purpose Vehicle SPV report detailed the plans for the SPV. Further details, including the Annex 2 - RBK - Teckal Company - Articles and the Annex 3 - RBK - Teckal Company - Members Agreement JF PA 2023 7 Oct 25, are available in the meeting reports.
