Hillingdon Council is grappling with significant pressure on its homelessness services, driven by a high demand for temporary accommodation and a growing strain on its budget. The council's Cabinet discussed these challenges during its meeting on Thursday, January 15, 2026, as part of the third quarterly update on the Temporary Accommodation Strategy and Action Plan.
Councillor Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, reported that while progress has been made in increasing housing supply and negotiating cost reductions with temporary accommodation providers, the demand from homeless households remains persistently high. For the first eight months of the 2025/26 financial year, an average of 48 households were placed in temporary accommodation per month, which, while within the set target, contributes to the overall pressure. The primary drivers for homelessness approaches between April and November 2025 were evictions from family and friends (1,012), the end of private rented tenancies (990), and the cessation of Home Office accommodation (934), collectively accounting for 61% of the 4,799 approaches during this period. Furthermore, new bookings into nightly paid accommodation during the same period were largely due to the end of private rented tenancies (209), followed by family and friend evictions (45), leaving prison (73), and domestic abuse (72).
This sustained demand means more families are remaining in temporary accommodation for extended periods, placing the homelessness budget under significant pressure. As of Month 7, the Housing Service reported a pressure of £5.6 million, largely attributed to temporary accommodation and homelessness support. This is a national issue, but Hillingdon is particularly impacted due to Heathrow Airport's presence within its boundaries, which affects supply and demand dynamics.
Officers are actively exploring innovative solutions to increase the availability of leased and private rented sector homes. These approaches aim to boost the supply of private rented accommodation and secure more leased accommodation where it proves financially viable for the council over the next six months.
Securing suitable and affordable private rented accommodation in Hillingdon continues to prove challenging, with access to a sufficient supply at an acceptable price failing to meet the growing need. This situation is exacerbated by Hillingdon's role as a Port Authority for Heathrow Airport. The council is also incurring exceptional costs as a port authority due to the arrival of a high number of UK and other nationals, costs that are not fully funded by the government. A review by London Councils identified a £740 million funding gap between homelessness costs incurred and funding provided by Central Government in 2024/25 for London councils.
Despite these pressures, progress has been made in increasing housing supply. Between April and the end of November 2025, there were 165 property acquisitions and 100 new build properties for low-cost rent, including 68 housing association properties. Furthermore, phase one of price negotiations with temporary accommodation providers has been completed, resulting in cost reductions. Phase two is now underway, with weighted average rates showing a reduction of £7.72 per unit per day from April to October 2025, generating an estimated full-year cost reduction of £2.13 million based on estimated average annual volumes in October 2025.
The strategic aim for Hillingdon Council remains to ensure residents are housed in good quality, affordable homes and to reduce the reliance on temporary accommodation. The report highlights that these housing-related costs are impacting local authorities nationwide.
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