Westminster Council agrees terms for purchasing 368 homes for temporary accommodation

Plans for Westminster Council to buy 368 properties previously leased as temporary accommodation (TA) are a step closer to becoming reality.

Westminster Council says it has completed due diligence checks and finalised the terms of an agreement with housing association A2Dominion for the purchase.

According to a council report shared on Friday 28 March, officers also settled a “rent dispute” with A2Dominion and agreed to write off or waive any grants or clawback conditions to complete the purchase. The task of negotiating a deal was delegated to senior council officials in February.

The portfolio consists of a variety of flats and houses ranging from one to six bedrooms located within the borough and across central and north London, a February council report shows. A majority (239) will be two-bedroom homes. It is not clear how much the properties are expected to cost the council, as some details are exempt from publication states the report.

In February, Westminster Council’s cabinet confirmed it would enter into a “credit tenant lease”. This financial instrument allows the council to own the properties at the point of purchase and pay for them over a 42-year period from the council’s general fund.

This funding structure will also include approximately £33.5mn which the council is expected to use to undertake refurbishment work to bring the homes to an energy performance certificate rating of C or better. This is understood to impact 39 percent of the homes and equate to £91,000 per property.

It will also establish a limited liability partnership (LLP), which it will wholly own. This was a condition placed on Westminster Council in order to secure funding from Macquarie Asset Management. The deal came about after A2Dominion, via Fifth Capital Limited, approached the council to “dispose” of the 368 properties the local authority was using as TA, the February report says. The properties had been used as TA by the council for the past 15 years.

Cllr Liza Begum, cabinet member for housing services, said: “We are working with A2Dominion to bring 368 units of temporary housing accommodation into our housing stock. These units are all located within Westminster and are currently used by the council.

“The council and A2Dominion are working together to ensure that all the residents are fully aware of the changes and able to engage with officers during the consultation period. All current residents of the units will remain in their homes following the acquisition.

“The council is committed to providing the best housing for residents in the borough and we are committing £178.3 million to our acquisitions programme to achieve this aim,” she said.

With demand for TA having increased significantly over the last three years, the council has actively sought to buy its own stock rather than rely on more expensive rented or nightly-book commercial accommodation. The Central London council currently leases 3,400 units of temporary accommodation from private landlords and organisations to meet its statutory obligations.

Under the Housing Act 1996 and the Homelessness Reduction Act 2017, councils must provide housing to people who present themselves as homeless or at risk of homelessness. Many are placed in temporary accommodation until suitable long-term housing can be found.

The council has seen an increase of more than 30 percent in households approaching them with housing needs compared with 2022/23, due to the high rent levels in Westminster and surrounding areas in London, the demand for social housing outstripping availability, and an increase in homelessness from the cost-of-living crisis.

Westminster Council, decision: Acquisition of A2Dominion Portfolio, 28 March 2025.

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