Ealing Council's Cabinet has approved plans to secure up to 400 new temporary homes for homeless households, a move projected to save the council millions of pounds annually. The decision, made at a meeting on Wednesday, March 11, 2026, aims to significantly reduce the council's annual temporary accommodation budget while improving the quality of housing provided.
The initiative is expected to generate substantial cost savings, with the 10-year-plus lease option for 200 units with provider Madison Brook alone projected to result in an average annual saving of at least £9.23k per property. Over the full 10-year term, the total net saving is estimated at £20.099m. This strategy moves away from costly nightly-paid accommodation and reduces reliance on bed and breakfast placements, which have been identified as detrimental to families experiencing homelessness.
The move will involve entering into leases with providers for ten years and one day. A specific agreement has been made to secure up to 200 units with the provider Madison Brook, with the council looking to initially deliver these units via the company. Madison Brook projects procuring 15 properties per month, and is in active conversations with six other boroughs for similar agreements. The council plans to evaluate the approach for further procurement after the initial 400 units are delivered.
Homeless households will be allocated to these new temporary homes based on a thorough Housing Needs Assessment carried out prior to the offer. All offers are made in line with the Placement Policy to ensure the most vulnerable households are prioritised. The units will be allocated to homeless households and individuals under s188 of the Housing Act 1996 (as amended).
The new temporary homes are expected to meet 'Better Home' standards, improving circumstances for households already disadvantaged by homelessness. The longer-term leases will allow the council to claim higher housing benefit subsidy rates, leading to substantial cost savings compared to nightly-paid accommodation.
Currently, approximately 50% of Ealing Council's temporary accommodation is procured from the private rented sector. While the number of families in bed and breakfast accommodation for over six weeks has significantly reduced from a peak of over 400 in 2024 to 49 by the third quarter of 2025/26, the council still accommodates over 1,800 families in non-council owned temporary accommodation.
The leases will be for a term of 10 years and 1 day, with rent increases aligned with government Local Housing Allowance rent uplifts. Madison Brook will manage and maintain the properties, with these requirements detailed in the lease. The council will guarantee dilapidations payments, capped at a maximum of five weeks' rent per tenancy. The Housing Supply Agreement will require Madison Brook to supply larger family homes at below market rents.
Councillor Louise Brett, Deputy Leader and Cabinet Member for Safe and Genuinely Affordable Homes, and Councillor Shital Manro, Cabinet Member for Good Growth and New Homes, were instrumental in bringing forward the proposal. The Strategic Director of Housing and Environment has been delegated authority to finalise the necessary lease and housing supply agreements. Further details can be found in the Public reports pack Wednesday 11-Mar-2026 17.00 Cabinet.