Cash-strapped Havering Council has approved plans to convert an office block outside the borough into residential units for homeless families.
Subject to planning consent, the London borough council will lease the vacant building in Basildon, in Essex, for 10 years, and aims to have it converted into 34 two-bed properties by next February.
The new units will enable the council to move people out of expensive hotel and nightly-let temporary accommodation, saving an estimated £1.8m over the decade and £5.3m in capital receipts.
Last year, Havering overspent on its temporary accommodation budget by £6m.
The council is facing a £74m budget gap for 2025-26, and has warned it could need to issue a section 114 notice without government support.
The council’s cabinet lead for climate change and housing need, Natasha Summers, said: ‘Given the shortage of social housing and the council’s financial challenges, establishing new cost-effective temporary housing solutions is a priority.’
