Havering Council is set to implement a new Homelessness Prevention and Rough Sleeping Strategy for 2026-2029, aiming to achieve significant annual savings of £11-12 million by reducing its reliance on expensive temporary accommodation.

The strategy, presented to the People Overview & Scrutiny Sub Committee on 8th September 2026, outlines four key objectives: preventing and reducing rough sleeping, ending the use of nightly paid and hotel accommodation by 2030, improving the temporary accommodation experience, and providing compassionate customer care. The strategy itself does not commit new expenditure but will be managed through existing budgets.

Darren Alexander, Assistant Director of Housing Demand, confirmed that the council currently spends between £11 and £12 million annually on temporary accommodation. The primary aim is to drastically cut this cost by moving away from costly nightly paid options. The strategy identifies several challenges associated with this transition, including the potential collapse of the private rented sector due to increased landlord costs and rising rents exceeding Local Housing Allowance support. Wider developer market pressures, such as increased borrowing and build costs, also pose a risk to new housing delivery. The council's past reliance on hotels, driven by a surge in need outpacing available private rented sector accommodation, has led to escalating costs and operational strain.

To mitigate these risks, Havering Council is implementing a planned supply programme. This involves moving away from dependence on market availability to a controlled approach through acquisitions, modular accommodation, long-term leasing, build-to-rent nominations, and partnership models. The council also plans to exit the Private Sector Lease (PSL) model, reduce financial risk by replacing nightly paid and hotel accommodation with predictable cost models, and repurpose existing assets as new supply becomes available. The strategy aims to influence and scale its delivery model to support wider learning and contribute to strategic discussions.

Preventing and Reducing Rough Sleeping

Under Objective 1, the strategy will focus on supporting individuals affected by trauma, family breakdown, exploitation, and begging. Success in preventing and reducing rough sleeping will be measured by sustained accommodation outcomes, reduced repeat instances of rough sleeping, increased engagement with support services, and the fostering of safer, more informed community responses.

Ending Hotel and Nightly Paid Accommodation

The strategy commits the council to working towards ending the use of nightly paid and hotel accommodation by 2030. The document does not provide a projected timeline beyond this target.

Improving Temporary Accommodation

Significant improvements are planned for the temporary accommodation experience to make the pathway clearer, safer, and more consistent. This includes supporting staff to provide proportionate support, creating psychologically informed environments, and utilising technology for better clarity and evidence capture. Residents will receive improved information, clearer expectations, and enhanced communication. The council aims to ensure inclusion, opportunity, and positive experiences, particularly for children. Effectiveness will be evaluated through resident understanding of decisions, increased use of lived experience in service improvement, and a reduction in avoidable complaints stemming from poor communication or delays. The council will also introduce practice weeks to assess service delivery, review communication, gather resident feedback, and provide assurance to leadership.

Increasing Accommodation Supply

The strategy outlines investment in modular accommodation, with 18 demountable units planned as the first phase of a scalable approach. Long-term affordable supply will be delivered through build-to-rent schemes, acquisitions, office-to-residential conversions, and modular housing. A build-to-rent model through the Inspired Solutions partnership is set to deliver up to 600 units at Local Housing Allowance-linked rents for 40 years. The Family Welcome Centre (74 units) and Jubilee Court (71 units) have already opened. However, specific details and capacities for all planned modular schemes and other developments are not fully elaborated.

Compassionate Customer Care

To ensure compassionate customer care, the council will consistently listen to residents and use their feedback to improve services. Practical and inclusive access routes, assisted digital support, and clear communication channels will be maintained. Partnerships will be strengthened to ensure housing acts as an enabler for health, social care, education, and community safety. Pathways and accommodation supply will be designed around anticipated needs, rather than solely responding to crises. Staff and managers will be supported to make clear, fair, and humane decisions, with strengthened assurance around case closure, communication quality, and resident understanding. Building community confidence and shared responsibility for preventing homelessness is also a key focus.

Recommendations for Cabinet

Recommendations for Cabinet consideration include establishing clear measures of success, developing a comprehensive implementation plan, and presenting a progress report to the committee within 12 months. Further details on the strategy can be found in the public reports pack for the People Overview & Scrutiny Sub Committee meeting on 8th September 2026: Public reports pack.