Deal will see London borough enter nominations agreement with investor and developer Inspired Solutions in bid to ease temporary accommodation crisis
Havering Council’s cabinet has approved a plan to enter into a 40-year nomination agreement with Inspired Solutions to deliver up to 600 build-to-rent properties.
The homes will be let to people on Havering Council’s waiting list with priority access for families at risk of homelessness, along with key workers.
Under the deal, investment company and developer Inspired Solutions will identify and purchase land in the borough with planning permission and deliver homes let at the current Local Housing Allowance rate. Inspired Solutions is funded primarily by private capital from institutional investors who provide the upfront finance to build or refurbish homes and then receive rental income over the long term.
The council said the initiative has the potential to deliver up to 600 family‑sized homes, with an initial first tranche of up to 71 units.
The move is aimed at easing Havering’s temporary accommodation pressures. It currently has 1,030 households in temporary accommodation, with 750 households residing in private sector leased properties or ex-council accommodation earmarked for demolition, which it said is “not a long-term solution”.
It said: “Securing up to 600 long-term private rented homes creates sufficient scale to stabilise the system, reduce length of stay in emergency accommodation, and prevent the cumulative year on year growth of hotel use as demand peaks later in the decade.
The council said its financial modelling shows that the first tranche could deliver £56m in savings for the council over 40 years compared to securing homes from the private hotel or B&B market. It said the wider programme could save £580m, depending on future demand and delivery levels.
The report to the cabinet said the council has considered the use of properties as temporary accommodation but said a housing benefit subsidy deficit would lead to the council losing out financially.
Natasha Summers, cabinet lead for housing need at Havering Council said: “This is a major step forward for families in Havering. Too many residents - especially children - are spending far too long in hotel rooms or unsuitable temporary accommodation.
“By securing hundreds of long‑term, good‑quality homes at affordable rents, we are not only protecting vulnerable households but creating stability for years to come.
“This partnership means Havering can help break its dependence on the expensive and unreliable nightly accommodation market. These homes will give families the space, security and dignity they deserve, while also protecting the Council’s finances. It is exactly the kind of bold, long‑term solution our borough needs.”
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