Croydon Council has approved a new four-year strategy to prevent homelessness, reduce the use of temporary accommodation and help more families move into settled homes.
The Temporary Accommodation Strategy 2026–2030, approved at last night’s Cabinet meeting, sets out how the Council will reduce demand for temporary accommodation through earlier intervention, homelessness prevention and improved move-on arrangement, and reduce its reliance on costly nightly paid accommodation.
At the end of June 2026, 3,283 Croydon households were living in temporary accommodation. Under the new strategy, the Council aims to reduce this to fewer than 2,600 by 2030, reduce the number of households in nightly paid accommodation to below 1,000 and deliver approximately £10m in savings between 2027 and 2030.
Like councils across the country, Croydon is facing growing pressure on housing. Rising living costs, high private rents and a shortage of affordable homes mean more people are turning to councils for help.
In Croydon, more than 8,600 households are waiting for social housing, whilst only around 680 social homes become available each year. With demand far greater than the number of homes available, the Strategy sets out a range of ways the Council will respond.
This includes helping people stay in their existing homes where possible and working with landlords to increase access to private rented homes. It will also create more opportunities for households to move on from temporary accommodation and reduce the amount of time families spend there.
Alongside these measures, the Council will look at different ways to provide temporary accommodation at a lower cost. This includes securing homes through longer-term leases and making greater use of homes the Council owns or controls, rather than relying as heavily on accommodation paid for by the night and improve value for money. One example is Zodiac House, which the Council bought to provide temporary accommodation for families.
It will also work with accommodation providers to bring down the cost of around 1,500 existing high-cost temporary accommodation placements within its revised pricing framework.
Croydon has already made progress. Government figures show that during 2025, Croydon achieved the largest reduction in temporary accommodation numbers of any London borough. The Council has also ended the use of commercial hotels, bed and breakfast accommodation for families and arrangements where families were split between different accommodation. More than 300 households have moved from temporary accommodation into social housing, while strengthened procurement and contract management have reduced the cost of newly procured temporary accommodation and improved value for money.
“There is no quick or easy solution to the housing crisis. Councils are supporting more families, whilst having fewer affordable homes available to meet that need. We have to be realistic about the scale of that challenge, but that does not mean accepting the situation as it is.
“Temporary accommodation provides an important safety net, but it cannot be the long-term answer. We need to intervene as early as possible, making the best use of the homes available and help people find a more settled housing solution.
“We have already made progress, but now we need to go further. This strategy is about building on that progress and doing everything within our power to tackle homelessness, whilst delivering the best possible value for Croydon residents.”
Jason Perry, Executive Mayor of Croydon
