Lewisham Council is set to spend £135 million on temporary accommodation over the next three years to address its statutory homelessness duties.

The decision was made by Mayor and Cabinet on Wednesday, 09 September 2026, who approved the procurement of dynamic purchasing system (DPS) software and the securing of temporary accommodation.

Councillor Natalie Thomas, Cabinet Member for Safer Homes, Homelessness and Housing Services, highlighted that the current process for sourcing and managing temporary accommodation is largely manual, resource-intensive, and lacks real-time oversight of costs, compliance, and supplier performance. This leads to operational inefficiencies and risks in meeting statutory duties.

The new dynamic purchasing system, to be provided by Access Adam Housing, will create a more consistent and transparent approach, helping officers identify accommodation more efficiently, strengthen compliance checks, and monitor landlords and providers more effectively.

Councillor Thomas stated, Temporary accommodation is definitely not where we want our families to remain while we continue to work to reduce its use. We must ensure that the homes we procure are safe, suitable, and properly managed.

The Council will enter into leases and other property agreements for temporary accommodation, estimated at £45 million per annum, totalling £135 million over three years. This initiative aims to improve the efficiency, transparency, and compliance of temporary accommodation sourcing and management.