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London Councils to set up not-for-profit company in ‘first of its kind’ homelessness scheme

A not-for-profit company is to be set up to deliver a new scheme to provide safe accommodation for families on the edge of homelessness in London.

Eleven London boroughs have signed up to the ‘Capital Letters’ scheme, which has attracted £38m in government funding and is said to be the first of its kind.

London Councils is setting up the company, which will be tasked with providing the service on behalf of the participant boroughs and will undertake the management of the homes which are provided.

The Ministry of Housing, Communities and Local Government said that the additional homes would help provide a long-term, stable solution for vulnerable families struggling to find secure accommodation, “providing a safety net for those who may otherwise feel they have nowhere else to go”.

It said that the current situation often saw London boroughs competing for the best accommodation – “driving up prices and slowing down the provision of quality housing for the most vulnerable”.

The new scheme will encourage London boroughs to work together in boosting accommodation to tackle homelessness across the capital.

Over the next three years, the scheme is expected to help more than 35,000 households within Greater London out of homelessness.

The Ministry said this joined-up approach would also give those at risk of homelessness the chance to stay closer to where they currently live.

Communities Secretary James Brokenshire said: “Everyone deserves a safe and secure home. I’ve seen for myself how hard each of the London boroughs works to provide those that are homeless with the support they need and a roof over their heads.

“This radical new way of working and unprecedented collaboration between the boroughs and government will make a real difference – providing more accommodation for the vulnerable and helping them to get back on their feet and away from homelessness for good.”

Cllr Darren Rodwell, London Councils’ Executive Member for Housing & Planning, said: “With so many homeless households and so little accommodation available, London faces the country’s most serious homelessness challenge.

“Capital Letters is a crucial opportunity to do things differently – and we are extremely pleased to have the government’s support for this innovative work.

“Through collaboration, boroughs will collectively strengthen our market position and secure much better housing options for homeless Londoners.”

The 11 boroughs are:

  • Tower Hamlets
  • Bexley
  • Haringey
  • Waltham Forest
  • Brent
  • Ealing
  • Barking and Dagenham
  • Croydon
  • Lewisham
  • Redbridge
  • Southwark

Further boroughs are expected to join at a later date.