Merton Council is grappling with a significant financial challenge, projecting an overspend of nearly £7 million on temporary accommodation for the 2024/25 financial year. This critical issue was a central focus at the Overview and Scrutiny Committee meeting held on Wednesday, March 11, 2026.
A dedicated Delivery Unit Team has been established and is actively collaborating with the Housing Needs Service to implement a multi-faceted strategy aimed at reducing this deficit. The team's approach involves six key areas of work: reducing the overall number of temporary accommodation placements, increasing the rate at which individuals are discharged from temporary accommodation, minimising the use of expensive spot-purchased
temporary accommodation, securing cheaper spot-purchased options, enhancing housing benefit recovery, and boosting the supply of available properties.
The primary factors contributing to the surge in demand for temporary accommodation have been identified as the conclusion of assured short-hold tenancies, a rise in Section 21 evictions, and evictions by family and friends stemming from complex personal circumstances. The Domestic Abuse Act 2021 has also expanded the council's obligations, mandating the provision of accommodation for individuals escaping domestic abuse.
While the council anticipates that the forthcoming Renters' Rights Act, which is set to outlaw Section 21 evictions, will help ease the pressure on temporary accommodation, uncertainties remain regarding its wider implications for the private rental market. Concerns have been voiced that some landlords might withdraw from the market, potentially leading to a reduction in the availability of private rental properties.
Merton Council maintains engagement with landlords through bi-annual forums, which also incorporate training sessions. In addition to conducting its own property inspections, the council participates in 'Setting the Standard,' a London-wide inspection regime for rental properties. Further details on the meeting discussions can be found in the OSC Call In Minutes.
