Key Points
- Waltham Forest Council faces a £23 million overspend on temporary accommodation for homeless residents.
- The council will relocate homeless residents outside the borough more frequently, prioritising affordability over location.
- The new homeless accommodation strategy was approved by the council cabinet on 4th November 2025.
- Social housing shortages in Waltham Forest have forced reliance on expensive hotels and B&Bs.
- Council Leader Grace Williams highlighted the council’s moral duty to support vulnerable residents and financial responsibility to taxpayers.
- Deputy Leader Ahsan Khan described the rising temporary housing costs as unsustainable and a serious future challenge.
- Joe Garrod, Strategic Director of Place, affirmed the need to find affordable homes outside the borough due to increased demand.
- A recent survey showed that living in temporary accommodation harms residents’ health, increases anxiety, and undermines wellbeing.
- The council’s strategy prioritises high-quality temporary and permanent homes but recognises many may need to move to private rentals outside Waltham Forest.
- Grace Williams expressed reluctance to send families far away but emphasised the necessity of offering affordable, settled homes over long stays in hotels.
What is the extent of the financial challenge facing Waltham Forest Council on homelessness?
As reported by Sebastian Mann, Local Democracy Reporter, Waltham Forest Council is grappling with a significant financial crisis, facing a £23 million overspend solely on temporary accommodation for homeless residents. This overspend stems from soaring costs to keep families in emergency housing such as hotels and bed-and-breakfast accommodations, which are increasingly unaffordable amid low availability of social housing locally. The current financial pressures have forced the council to reconsider its approach to housing provision, focusing on sustainability amid a widening budget deficit.
Council Leader Grace Williams stated that the council has a dual responsibility: a moral obligation to vulnerable residents and a fiscal responsibility to taxpayers. She emphasised the need for clarity about what the council can realistically deliver, balancing its duty to those in housing need who cannot afford to live locally with the financial limitations the council faces. She said,
“We need to be clear about what we can and cannot do,”
and questioned how the council can meet its duties effectively.
Why will Waltham Forest Council move homeless residents outside the borough more often?
Due to the acute shortage of affordable social housing within Waltham Forest and the spiralling costs of local rents, the council has resolved to adjust its strategy towards relocating residents outside the borough. As Deputy Leader Ahsan Khan, who is also responsible for housing in Waltham Forest, explained, the current spending on temporary accommodation is “not sustainable for the council going forward.” He warned that continuing on this trajectory would create “huge challenges” for the council’s future financial health.
Joe Garrod, the council’s Strategic Director of Place, elaborated in the strategy report approved by cabinet members, indicating a shift away from “location” towards “good homes.” He said council officers would prioritise “high-quality temporary accommodation and settled homes,” acknowledging that rising demand would require looking beyond Waltham Forest more often to secure affordable housing for residents.
The homelessness strategy report highlighted the bleak reality that
“for most residents, moving into the private rented sector outside Waltham Forest is the most realistic route out of temporary accommodation.”
The long waiting lists for social housing — with an average wait of 11 years for a three-bedroom council home — leave few practical alternatives within the borough.
How is temporary accommodation impacting homeless residents’ wellbeing?
Waltham Forest conducted a survey among residents living in temporary accommodation that revealed stark consequences for their health and wellbeing. The findings showed that temporary housing “negatively impacted” residents’ health and increased anxiety levels, which “undermined wellbeing.” This instability is exacerbated by the prohibitive costs of renting locally, which stand in direct conflict with residents’ preference to wait for permanent accommodation before seeking work.
Cllr Khan further noted that some temporary accommodations barely meet minimum living standards, adversely affecting residents’ health, education opportunities, job prospects, and overall life chances. He expressed concern that the current conditions create a detrimental environment for families already vulnerable due to homelessness.
What are the council’s priorities and moral stance regarding homeless families?
Leader Grace Williams voiced the council’s ethical considerations regarding its strategy. While the council reluctantly plans to move some families to affordable homes outside Waltham Forest—including potentially far regions such as the north-east of England—she said the choice is between this and leaving families to endure prolonged stays in costly hotels. Speaking to MyLondon, Williams said,
“We don’t want to send families to the north-east, 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?”.
Williams also holds the position of deputy chair of London Councils, bringing a wider London perspective to the homelessness crisis. The council aims to safeguard vulnerable residents while managing taxpayer funds responsibly amid an overwhelming housing crisis.
What wider challenges contribute to homelessness in Waltham Forest?
Joe Garrod, as reported by PoliticsUK, outlined that homelessness in Waltham Forest is a systemic risk to local council finances. The freeze on local housing allowance rates and London’s high housing costs have made it increasingly difficult for families with low incomes to find affordable homes. Garrod highlighted poverty, unemployment, mental and physical ill health, and family conflict as root causes that contribute to homelessness. In response, the council has introduced a Families in Housing Need Programme, a prevention-focused initiative aiming to stabilize housing situations and support vulnerable families to avoid homelessness in the first place.
What is the financial outlook and council response moving forward?
The Medium Term Financial Strategy (MTFS) presented to Waltham Forest’s Cabinet on 5th November 2024 revealed a projected £17 million overspend for the year, mostly driven by social care and the soaring costs of temporary accommodation. Waltham Forest’s expenditure on temporary accommodation alone has increased by 68% over the previous year. Council Leader Grace Williams stated that the council must make “tough decisions” to remain financially stable and continue to protect vital front-line services for the borough’s most vulnerable residents. The council plans to pursue fairer funding from the government to better reflect real needs and costs.
How does Waltham Forest’s homelessness crisis compare across London?
Waltham Forest is not alone in facing a homelessness emergency and housing crisis. Across London, many boroughs grapple with similarly high costs and severe shortages of social housing. In places like Southwark, affordable housing quotas are under threat from development pressures, leaving thousands waiting for council homes. This wider London context emphasizes the extensive challenge councils face to provide permanent, affordable housing and the difficult compromises involved in moving some residents beyond their home boroughs.
