London councils and their housing companies have spent over £140 million purchasing homes across England to relocate homeless families outside the capital. Since 2017, more than 850 properties have been acquired, according to a Guardian analysis of property ownership data.
These homes, owned either directly by councils or through housing companies they control, serve as temporary emergency housing or long-term private rental properties for displaced individuals and families.
Homes Purchased in Deprived Areas Facing Their Own Housing Crisis
Many of the properties are concentrated in deprived areas of southeast and east England, where homelessness levels are already high. However, in the past year, London councils have expanded their purchases to the Midlands and even the northeast, further shifting the crisis to different regions.
Housing charities and Labour MPs have criticized these relocations, calling them “scarring” and “traumatic” for families forced to move miles away from their communities.
Councils Investing Millions in Relocation Housing
Among the biggest spenders are:
• Waltham Forest and Bromley councils, in partnership with housing and social care company Mears Group, which spent nearly £80 million on over 500 homes in Harlow, Thurrock, and Maidstone.
• Brent council, which purchased 75 properties in Milton Keynes, Hemel Hempstead, and Slough for over £18 million.
• Barnet council, spending more than £10 million to buy nearly 70 homes in Peterborough and Luton.
• Housing Gateway, a company wholly owned by Enfield council, which spent £13 million in 2018 on Greenway House in Harlow, a converted office block with 83 flats used as temporary accommodation.
• Redbridge council, which has spent £10 million acquiring 55 homes outside London, including Coventry and Leicester.
Relocation Companies No Longer Needed as Councils Take Over the Process
In recent years, councils have paid millions to private relocation companies to assist in moving homeless people outside London. However, some councils are now handling relocations internally by purchasing properties through housing subsidiaries.
For example, Enfield council plans to buy 28 homes in Liverpool this year through Housing Gateway, initially using them as temporary accommodation before securing long-term placements for relocated families.
Harlow: The Most Popular Destination for London Councils
Harlow has become the most sought-after area for London councils buying properties, with 164 homes purchased there since 2017. Other areas include Basildon in Essex, where 84 homes owned by London councils exist, despite the area already housing nearly 700 homeless households in emergency accommodation.
MPs and Housing Charities Condemn the Impact on Families
Labour MPs have criticized out-of-area placements, highlighting the severe disruption they cause for vulnerable families.
Florence Eshalomi, Labour MP and chair of the housing committee, said:
“Out-of-area placements force families away from essential support and education, leaving children to travel hours to school. The housing crisis and underfunding of local councils have made this situation unbearable.”
Naushabah Khan, Labour MP for Gillingham and Rainham, added:
“The government’s failure to address the housing crisis over the past 14 years has led to this damaging practice becoming the norm.”
Housing charity Shelter’s CEO Polly Neate called on the government to build more social housing rather than investing in temporary solutions:
“Families already facing homelessness are being thrown into further turmoil by being moved miles away overnight. Instead of buying up homes outside London, we need more social homes where they are most needed.”
Council Responses to Housing Concerns
London councils have defended their actions, citing funding constraints and a lack of affordable housing in their boroughs.
• Waltham Forest said their housing company aims to provide high-quality long-term homes rather than relying on temporary accommodation.
• Bromley stated that funding challenges in outer London have made it difficult to secure local housing, forcing them to look elsewhere.
• Barnet clarified that they have not purchased any homes outside their borough since 2020.
• Redbridge aims to transition temporary housing into long-term tenancies.
• Brent emphasized its commitment to building council homes and noted that most of its purchased homes remain in London.
A Growing Housing Crisis with No Immediate Solution
Government data shows that out-of-borough placements are at a record high, with a 39% increase in the past year alone. As London councils continue to buy properties outside the capital, the question remains whether this strategy is a sustainable solution or merely a temporary fix that pushes the crisis elsewhere.
