‘Rising demand’ means the council will have to find affordable homes for residents outside the borough, reports Sebastian Mann, Local Democracy Reporter

The council has said that rising demand means that it will need to look outside of Waltham Forest ‘more often’ to find affordable homes for residents

Waltham Forest Council will look to house residents at risk of homelessness outside the borough “more often” as pressures on temporary accommodation worsen.

The council’s new strategy, due to be approved by cabinet next week, will focus on “good homes over location”.

The local authority owes a legal duty to house certain residents who face ending up on the streets, but it has been struggling with what it calls a “severe housing crisis”.

Families are most often housed in hotels or bed-and-breakfast-style accommodation, but this approach is appearing unsustainable amid projections the town hall will go over budget by £31million. Almost half of that overspend is on temporary accommodation.

In a report published this week, Joe Garrod, the council’s strategic director of place, said officers would “prioritise high-quality temporary accommodation and settled homes, recognising that the rising demand means that we will need to look outside of Waltham Forest more often to find affordable homes for residents”.

The strategy says that the growing waiting list for social housing in Waltham Forest means that “for most residents, moving into the private rented sector outside Waltham Forest is the most realistic route out of temporary accommodation”.

“We heard from residents how there are several financial and practical barriers that can make this difficult,” it adds.

Waltham Forest surveyed people living in temporary accommodation last month, which found that living there was “negatively impacting” their health, increasing anxiety and “undermining wellbeing”.

Additionally, the cost of renting locally is “prohibitively high,” which clashes with people’s plans to wait for settled, permanent accommodation before finding work.

The strategy also lays out steps to acquire pre-existing homes. The council has confirmed it will take ownership of 122 new units, which it says will “reduce our reliance on private providers”. The report does not specify where these homes are.

Progress has been rocky, however, after high government borrowing rates saw the town hall shelve its plans to purchase 400 homes – 200 in London and 200 in the Home Counties – earlier this month.

Waltham Forest aims to see 27,000 new homes built in the borough by 2035 under its Local Plan. Though many will be for private ownership, thousands will be available through social and ‘affordable’ housing schemes.

Though the town hall regularly approves housing proposals, the rising cost of building materials means work is slow.

Garrod warned in his report that, should the number of households in temporary accommodation continue to increase, the overspend “will rise and increase the financial pressure on the council”.

Last month, council data revealed it was set to go over its £8.5m temporary accommodation budget by around £14m. Coupled with a projected £15m overspend on adult social care, the mounting costs has left the council facing a £31m deficit come the end of the financial year.

Housing homeless families will cost Waltham Forest Council £23m this year alone, which is £2m more than the total it spent between 2021 and 2023.

It has historically blamed the issue on the “grim reality” there are not enough available homes in London.

Earlier this week, council leader Grace Williams – who also sits as deputy chair of London Councils – told MyLondon: “We don’t want to send families to the north-east [of England], but if the choice is between being able to settle someone into a home that they can afford or for them to live for months or years in hotels, what would residents think is reasonable what we do?”

The situation is not unique to Waltham Forest.

In Havering, the easternmost borough, the soaring costs of temporary housing – alongside social care – saw the town hall accept a government loan of £88m in February to avoid effective bankruptcy.

Cllr Williams has warned that without “tough decisions” being made – including £15m cuts of this year alone – Waltham Forest may face a similar fate.

No news is bad news 

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts. 

The audiences they serve know less, understand less, and can do less. 

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation. 

Choose the news. Don’t lose the news.

Monthly direct debit 

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month.  £50 annual supporters get a digital copy of each month's paper before anyone else.

More information on supporting us monthly or annually 

More Information about donations