Hackney Council's Homelessness Transformation Programme is facing significant challenges in managing demand and increasing the supply of temporary accommodation, according to a review by the Housing and Homelessness Scrutiny Commission. The programme aims to reduce the council's reliance on expensive, nightly-paid accommodation, which costs an average of £17,000 per household annually, with some high-cost families incurring up to £40,000 per year.
A key area of concern is Demand Management. Preventative measures, including redesigning the homelessness front door,
investing in staff training, and strengthening partnerships with voluntary sector organisations and other public bodies, have been hampered by a notable decline in successful prevention and relief outcomes. Since 2025/26, there has been a 29% decrease in these outcomes. This is partly attributed to private landlords exiting the market following the Renters' Rights Act, making it more difficult for the council to secure private rented accommodation for homeless families. The council is reviewing the incentives offered to private landlords to improve outcomes.
External factors beyond the council's control, such as market changes and potential changes to housing benefit regulations, continue to influence demand. The availability of suitable new temporary accommodation supply in the market, of the right type and quality, is also a challenge.
The Supply workstream, focused on increasing the availability of cost-effective temporary accommodation, is seeing substantial investment. Hackney Council is allocating £145 million in a capital programme for 2026/27 to acquire properties within Hackney and neighbouring boroughs. The council is on course to deliver 125 units through the Council House Acquisition Programme (CHAP) by the end of September 2026. Furthermore, the council is awaiting a decision on a bid for the GLA's new supported and affordable homes programme, which could provide further grant funding for acquisitions within the borough.
Despite these efforts, risks persist. Capacity constraints within council services present ongoing difficulties for the programme. While specific strategies to address these constraints are not detailed, the council is working to manage capacity by streamlining processes and utilizing technology to reduce administrative time, allowing staff to focus more on finding solutions. Some staff are working on this programme in addition to their existing workloads.
Commission members have voiced concerns regarding the quality of temporary accommodation and the impact of placing families out of borough. Approximately one-third of Hackney households in temporary accommodation are placed outside the borough, with the vast majority remaining within London and neighbouring boroughs. There are 133 households placed outside of London, some due to risk levels. The council assesses the suitability of temporary accommodation based on a holistic assessment of household needs, including medical, affordability, location, size, layout, and social needs or risks. Nightly paid accommodation from private providers is often of the poorest quality, and the council aims to retain control over maintenance and repairs to ensure timely and quality work through regular inspections.
Further details on the programme can be found in the Public reports pack for the Housing and Homelessness Scrutiny Commission meeting on 8 September 2026.
