Richmond Council is set to achieve significant savings of up to £1.92 million annually by the financial year 2029-30 through the adoption of a new Private Rented Sector Offer Policy. The policy, unanimously approved by the Adult Social Services, Health and Housing Committee, aims to provide a more settled housing solution for individuals and families facing homelessness while reducing the council's expenditure on temporary accommodation.
The new policy allows the council to discharge its main housing duty by offering suitable accommodation in the private rented sector. This is expected to be a more efficient and cost-effective approach compared to the prolonged use of temporary accommodation, which can cost the council an average of £16.6k per household annually. The projected savings are based on an estimated 48 private rented sector offers per year, a figure benchmarked against similar London authorities. As of May 31, 2026, there were 794 households accommodated in temporary accommodation, highlighting the scale of the issue the new policy aims to address.
During the meeting on Thursday, 30 July 2026, councillors discussed the policy's framework, which includes robust safeguards to ensure any offer is suitable. Suitability is assessed on a case-by-case basis, considering affordability, property size, and proximity to essential services such as schools and healthcare facilities. Beyond these, suitable accommodation must also meet the physical and medical needs of all household members, including considerations like wheelchair access or a wet room. The definition of 'reasonable distance' for proximity to services is not fixed and takes into account specific household needs, such as the mobility of children and the location of schools. Crucially, the council must ensure that any identified school in the area is actually admitting pupils.
Households will retain the right to request a statutory review if they believe an offer is not suitable. This review is undertaken by a more senior and independent member of staff. If still unsatisfied, households can seek a legal appeal through the courts on a point of law. The review process involves submitting a request within 28 days of the decision letter and is typically completed within eight weeks. If the review upholds the original decision, legal aid may be available for further appeals.
Paul Chadwick, Executive Director of Resident Services, highlighted that the policy is part of a broader homelessness transformation programme aimed at preventing homelessness and improving outcomes for residents. He stated, Our real aim is to make the whole service that much better for anyone in the borough who is at risk of homeless or who is already homeless. We're doing our level best to provide them a much more certain service, a much more helpful service, one that's not so crowded, so chaotic, frankly.
The policy is designed to be implemented immediately, as it enacts powers already existing within the Housing Act 1996. This contrasts with changes to the council's allocations policy, which require statutory consultation. The financial implications of the policy are substantial, with projected savings rising from £40,000 in the first year (2026/27) to £590,000 in 2027-28, £1.39 million in 2028-29, and reaching the full £1.92 million by 2029-30. However, achieving the target of 48 discharges per year is considered 'challenging' and a 'stretch' as the council has not previously undertaken such a programme. Nevertheless, the council believes it is achievable through existing relationships with private landlords and letting agents.
Discussions also touched upon the potential for offers to be made outside of the borough. Assurances were given that affordability and suitability would remain key considerations. The council will provide support to help households settle into new areas, including information on claiming local council tax support, registering with a local GP, accessing emergency funding, and applying for school places. The duration of this support was not specified.
Furthermore, the policy aligns with the Renters' Rights Act, ensuring landlords are fit and proper persons. The council will verify this by reviewing landlord databases, Companies House records, and any outstanding prosecution or criminal records. Landlords or letting agents with flags against them will be prevented from operating under this legislation, which is part of a broader, recently introduced legal framework.
The committee unanimously adopted the Private Rented Sector Offer Policy, marking a significant step in the council's strategy to address homelessness and manage its housing budget more effectively. The full details of the policy and the committee's discussions can be found in the Public reports pack for the meeting on Thursday, 30 July 2026.
