Havering Council to Convert Vacant Shop into Homeless Family Accommodation

An east London local authority, Havering Council, is set to repurpose a former guitar shop to provide housing for 55 homeless families, responding to increasing financial pressures. The council intends to lease Chesham House in Romford, where families in need could reside for periods ranging from 12 to 24 months. The council has stated that the cost of temporary accommodation represents one of its most significant financial burdens. By entering into a 10-year lease for the commercial building, which has been vacant since the guitar shop closed in October, the authority anticipates saving £9.7m over the next decade. Council leader Ray Morgon remarked that utilizing this site would have a “profound and positive” impact on residents considered at risk. According to London Councils, a collective body representing London’s local governments, residents at risk of homelessness are typically housed in hotels and bed-and-breakfast-style accommodation, a practice that costs councils millions. Havering Council, which is governed by the Havering Residents Association, overspent its accommodation budget by £6.1m. Furthermore, due to escalating pressures, the council is facing a projected £74m budget gap for the 2025-26 financial year. Leasing the Chesham House site, owned by the National Housing Group, will incur a cost of £8.4m for the council, with an additional £6.5m required to operate the accommodation. However, the authority indicated that this latter figure would be recovered through service charges paid by its tenants. Labour councillor Keith Darvill stressed the importance of the accommodation being suitable, citing numerous examples where commercial properties have not been converted appropriately. Nevertheless, he described the situation regarding temporary accommodation in Havering as a “real mess.” Patrick Odling-Smee, a member of the council’s executive leadership team, stated that while the council would prefer not to use a commercial property to house homeless families, various housing challenges have led them to this current situation. Councillors approved the plan during a cabinet meeting held on 11 December.