Barnet Council is grappling with a significant increase in the demand for temporary accommodation, with projections indicating a rise to approximately 3,167 households by March 2027. This escalating challenge was a key focus during a Finance and Growth Overview and Scrutiny Sub-Committee meeting held on Monday, July 20, 2026.

The committee reviewed the council's financial forecast for 2026/27, which identified temporary accommodation as a major financial hurdle. The ongoing housing crisis continues to drive this demand, exacerbated by rising rental costs and a widening gap between market rents and Local Housing Allowance (LHA) rates, which significantly increases net costs to the council.

Anissa Darr, Executive Director of Finance, stated that Temporary accommodation remains one of the Council's most significant financial challenges. While numbers saw a dip in the first quarter of 2026, partly due to the availability of units at Collendale Gardens, this is not seen as a sustained reduction in demand. The underlying trend is still upwards and we expect demand to climb back to around 3,167 households by March 2027, she added.

Councillor Paul Roberts questioned the sustainability of this improvement. Officers confirmed that the dip was not considered a sustained reduction. The Collendale Gardens site, which has 311 units, saw around 200 let by June 2026 with full occupation expected by the end of July 2026. This provided a strong kind of one-off effect rather than a long-term solution.

Bar chart showing Non-Domestic Rate (NNDR) in-year percentage collection against net collectable debit from April 2021 to March 2026.
Bar chart showing Non-Domestic Rate (NNDR) in-year percentage collection against net collectable debit from April 2021 to March 2026.

Beyond the provision at Collendale Gardens, Barnet Council is exploring strategies to address the rising demand and financial challenge. These include redesigning services to be more preventative, automating repetitive tasks, and utilising data analytics to predict and address demand early. The focus is on trying to stop more demand emerging when people are also in our front door.

The duration households remain in temporary accommodation is also a concern. From summer 2025, the average stay in interim accommodation is projected to be seven and a half months. However, the average stay in temporary accommodation before moving to permanent housing is nearly three years. The council's long-term plan for permanent housing solutions, beyond facilitating moves from temporary accommodation, is not explicitly detailed in the reviewed documents.

A line graph showing projected financial figures over time, with a highlighted annotation indicating future costs.
A line graph showing projected financial figures over time, with a highlighted annotation indicating future costs.

The report, available in the public reports pack for the Finance and Growth Overview and Scrutiny Sub-Committee meeting on 20th July 2026, outlines these financial projections and challenges.