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Waltham Forest resorts to cross-borough housing as homelessness costs soar

Monday, 3 November 2025 5:03AM UTC

Waltham Forest Council plans to increase housing outside the borough amid a £31 million overspend on temporary accommodation, highlighting wider London-wide struggles to address homelessness and affordable housing shortages.

Waltham Forest Council is set to increase the practice of housing residents at risk of homelessness outside the borough as it confronts mounting pressures on temporary accommodation. The council’s new housing strategy, due for cabinet approval next week, emphasises securing “good homes over location” to address what it describes as a “severe housing crisis.” This shift reflects wider challenges faced by London boroughs in balancing affordability, availability, and legal duties to protect vulnerable residents.

Under legal obligations, Waltham Forest must provide housing to certain residents threatened with homelessness, yet the borough has struggled to meet demand amid soaring costs. Temporary accommodation frequently takes the form of hotels or bed-and-breakfast venues, an approach increasingly seen as unsustainable with the council projecting a £31 million budget overspend this financial year—almost half of which relates to temporary housing costs. Council leader Grace Williams, who also serves as deputy chair of London Councils, acknowledged the difficult choices involved, stating: “We don’t want to send families to the north-east, but if the choice is between settling someone into an affordable home or leaving them in hotels for months or years, what would residents think is reasonable?” This reflects a harsh reality in which families face long-distance relocation, sometimes as far as 275 miles, to find affordable housing.

This situation is reflected in a recent council report by Joe Garrod, Waltham Forest’s strategic director of place, which commits to prioritising high-quality temporary and settled accommodation, including accepting the necessity to look beyond borough boundaries. The council’s housing strategy recognises that for many residents, moving into the private rented sector outside Waltham Forest represents the most realistic route out of temporary accommodation, despite the financial and practical barriers highlighted by the council’s survey of those currently housed in temporary facilities. Respondents reported negative impacts on health, increased anxiety, and significant affordability challenges that undermined their stability and prospects.

To alleviate the crisis, Waltham Forest plans to increase its housing stock by acquiring existing homes. One recent cabinet decision approved spending nearly £29 million to purchase over 60 homes to convert into temporary accommodation, aiming to reduce reliance on costly private providers. This follows previous ambitions to buy 400 homes—half within London and half in the Home Counties—but plans were shelved in the face of high government borrowing rates. Despite these efforts, the council’s longer-term Local Plan targets the construction of 27,000 new homes by 2035, including significant social and affordable housing components, though slow progress and rising construction costs remain obstacles.

Financial pressures on Waltham Forest are stark. Housing families in temporary accommodation is forecast to cost £23 million this year alone, exceeding by £2 million what the council spent over two years from 2021 to 2023. This cost spiral, combined with overspending in adult social care, has pushed the council towards a £31 million overall deficit. Similar financial strains are visible across London; nearby Havering borough recently accepted an £88 million government loan to avoid bankruptcy, a warning that council leader Grace Williams acknowledges could potentially apply to Waltham Forest without “tough decisions” and budget cuts.

The situation underscores the broader crisis facing London’s local authorities in managing homelessness amid limited affordable housing supply and escalating costs. While Waltham Forest continues to seek solutions within and beyond its borders, the challenge remains formidable, forcing councils to balance legal duties, resident wellbeing, and financial sustainability in an increasingly constrained landscape.

📌 Reference Map:

Paragraph 1 – ^[1] (MyLondon), ^[4] (Waltham Forest Echo)
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Paragraph 3 – ^[1] (MyLondon), ^[2] (Waltham Forest Council), ^[6] (Waltham Forest Echo)
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Paragraph 6 – ^[1] (MyLondon), ^[4] (Waltham Forest Echo), ^[5] (OpenCouncil Network)
Paragraph 7 – ^[1] (MyLondon), ^[4] (Waltham Forest Echo)

Source: Noah Wire Services

More on this

https://www.mylondon.news/news/east-london-news/waltham-forest-could-house-families-32780554 - Please view link - unable to able to access data
https://www.walthamforest.gov.uk/housing/find-home/temporary-accommodation - Waltham Forest Council provides temporary accommodation to residents who are homeless, eligible for help, and have a priority need. This accommodation is intended for short-term stays and can include bed and breakfast facilities. The council aims to find suitable accommodation within the borough but may place individuals outside Waltham Forest if local options are unavailable. Residents are responsible for paying rent, and the council assists with Housing Benefit or Universal Credit claims. The duration of stay ends when the council's duty concludes, such as when permanent housing is found.
https://walthamforestecho.co.uk/2025/06/03/council-to-spend-29m-buying-more-than-60-homes/ - Waltham Forest Council plans to spend nearly £29 million to purchase over 60 homes, converting them into temporary accommodation for residents at immediate risk of homelessness. This initiative aims to alleviate pressure on the housing sector, which has been a significant financial strain on the council, alongside social care. The decision was approved at a cabinet meeting, with Councillor Ahsan Khan highlighting the dual financial and quality challenges posed by temporary accommodation.
https://walthamforestecho.co.uk/2025/09/05/council-predicts-31m-overspend-by-end-of-financial-year/ - Waltham Forest Council forecasts a £31 million overspend by the end of the financial year, primarily due to rising costs in temporary accommodation and social care services. The council overspent by £24 million last year, with the overspend attributed to increased demand and costs in these areas. Council leader Grace Williams acknowledged the severe financial pressure faced by local authorities and the need for tough decisions to address the budget deficit.
https://opencouncil.network/meetings/55379 - A report presented to Waltham Forest Council's Cabinet in February 2025 highlighted a forecasted net overspend of £20.522 million, up £4.265 million from the previous month. The overspend was predominantly in Adults Social Care (£7.585 million), Housing General Fund (Temporary Accommodation) (£6.570 million), SEND (£4.655 million), and Children’s Social Care (£1.887 million). The report outlined plans to identify £10 million in savings to reduce the overspend, including proposals totaling £6.574 million.
https://walthamforestecho.co.uk/2024/11/15/waltham-forest-has-spent-20m-on-temporary-accommodation-since-2021/ - Since 2021, Waltham Forest Council has spent over £20 million on temporary accommodation for residents at risk of homelessness. The number of households in temporary accommodation increased from 999 in 2021 to 1,148 in 2023. Councillor Ahsan Khan described the situation as a 'grim reality,' citing a shortage of available homes in London. The council has been placing residents in hotels or bed-and-breakfast-style accommodations, with some rehoused outside London.
https://walthamforestecho.co.uk/2025/02/10/temporary-accommodation-costs-drop-but-demand-rises/ - Waltham Forest Council reported a decrease in the average weekly cost of temporary accommodation from £327 in October to £246 in November last year, a 25% drop. However, the number of households in temporary accommodation rose, with 1,549 households living in such accommodation last November. The council acknowledged the financial strain of providing temporary housing and the challenges posed by a shortage of suitable spaces in both council-owned properties and the private rental sector.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative is recent, published on 28 October 2025. It aligns with Waltham Forest Council's ongoing housing strategy, including plans to acquire 122 new units to reduce reliance on private providers. ([walthamforestecho.co.uk](https://walthamforestecho.co.uk/2025/10/28/council-will-house-residents-outside-borough-more-often/?utm_source=openai)) However, similar reports from earlier this year, such as the council's £29 million plan to purchase over 60 homes, indicate that the core information has been previously reported. ([walthamforestecho.co.uk](https://walthamforestecho.co.uk/2025/06/03/council-to-spend-29m-buying-more-than-60-homes/?utm_source=openai)) The inclusion of updated data on the £31 million budget overspend and the council's strategic shift towards housing residents outside the borough adds freshness to the narrative. Nonetheless, the repetition of earlier information suggests a moderate freshness score.

Quotes check

Score: 7

Notes: The report includes a quote from Council leader Grace Williams: "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?" ([walthamforestecho.co.uk](https://walthamforestecho.co.uk/2025/10/28/council-will-house-residents-outside-borough-more-often/?utm_source=openai)) This quote appears to be original to this report, with no exact matches found in earlier publications. However, similar sentiments have been expressed by Williams in previous reports, indicating a potential reuse of content. The lack of direct matches for this specific quote suggests a moderate originality score.

Source reliability

Score: 8

Notes: The narrative originates from Waltham Forest Echo, a local news outlet. While it provides detailed coverage of local issues, its reach and recognition may be limited compared to national media. The report references official council documents and statements, enhancing its credibility. However, the reliance on a single local source may raise questions about the breadth of information.

Plausability check

Score: 9

Notes: The claims about Waltham Forest Council's housing strategy and budget overspend are consistent with information from official council documents and previous reports. The narrative aligns with the council's stated priorities and actions, such as the Housing Compact 2024 to 2029 and the Capital Investment Strategy. ([walthamforest.gov.uk](https://www.walthamforest.gov.uk/housing/housing-strategies-policies-and-guidance/housing-strategies/housing-compact-2024-2029?utm_source=openai)) The inclusion of specific figures, such as the £31 million budget overspend and the £29 million plan to purchase over 60 homes, adds credibility. The tone and language used are appropriate for the topic and region, with no inconsistencies noted.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments in Waltham Forest Council's housing strategy, including plans to house residents outside the borough and address budget overspends. While the core information has been previously reported, the inclusion of updated data and specific figures adds freshness. The report is sourced from a local news outlet, which, while credible, may have limited reach. The plausibility of the claims is supported by official council documents and previous reports. Given the moderate freshness and originality, and the reliance on a single local source, the overall assessment is OPEN with medium confidence.

Homelessness
London Boroughs
Housing Crisis