Lambeth expects most homeless households will be moved outside Lambeth – and often outside the southeast – under new council policy

Most homeless households in Lambeth should now expect to be placed outside the borough – and in many cases outside the southeast – under a major overhaul of the council’s Placement Policy.

The new policy, set to be approved by Labour Deputy Leader of the Council, Cllr Danial Adilypour, makes clear that “most households will have to move out of the borough and often out of the southeast” because of the severe shortage of affordable accommodation locally.

It also accepts that many families will potentially “lose proximity to support networks, schools or employment.”

The changes consolidate two existing documents – the 2013 Placement Policy and the 2024 Discharge of Duty into the Private Rented Sector Policy – into one new framework.

The council claims this will increase transparency, strengthen legal robustness and create a clearer set of rules for how housing decisions are made for homeless households.

The council cites a widening mismatch between housing supply and demand, with temporary accommodation numbers rising and financial pressures becoming increasingly acute.

Housing benefit for temporary accommodation remains pegged to 2011 levels, leaving the council to cover the widening gap between subsidy and real rents.

In addition, Lambeth is preparing to bring its statutory homelessness review service back in-house. The report says the current private sector model is costly and prone to significant delays, which then prevent the council from discharging its housing duties and moving applicants on.

The updated policy introduces far more detailed guidelines on how placements are decided. Key changes include:

Clear distinctions between interim accommodation, longer-term temporary accommodation and private-rented-sector (PRS) offers.

Replacement of the old A–C banding system with a fuller framework covering factors such as employment, education (including SEND and exam years), caring responsibilities, medical needs, safety concerns and affordability.

A stronger acknowledgement that affordability is now the overriding constraint, meaning most placements will inevitably be out of borough and often out of London.

Expanded guidance on applicants’ rights, review processes and relocation support.

A dedicated section on the Public Sector Equality Duty.

Despite the new structure, the council stresses that all cases must still be assessed individually and that offers must meet legal tests of suitability.

Only a limited number of households will qualify for more local placements. Examples given include:

People in secure employment who need to remain within a commutable distance.

Children sitting GCSEs or A-levels.

Carers whose relocation would trigger statutory care needs for those they support.

Households with essential medical or safety requirements.

Applicants requiring adapted accommodation.

The council acknowledges that some applicants currently placed within 30 minutes of the borough may now be sent further, though placements must still be “within a reasonable commuting time.”

The report says the new policy will deliver greater consistency, fairness and transparency, and should help households move more quickly into longer-term, sustainable private rented accommodation.

But it also notes that impacts “are not only positive.” Families may be placed far from Lambeth, disrupting school attendance, employment and support networks.

The council says it will mitigate these issues by ensuring all placements meet legal suitability requirements and by providing relocation support, including information on schools, SEND provision, childcare, healthcare, benefits, local services and employment opportunities.

If a household becomes unintentionally homeless from a private rented sector offer within two years, Lambeth will again owe a housing duty.

Benchmarking across Brent, Camden, Enfield, Hackney, Waltham Forest, Wandsworth and Westminster shows a broadly similar approach: small cohorts are prioritised for local placements, while most households face moves to outer areas or beyond London.

The report argues Lambeth’s model “is consistent with best practice.”

The council says the policy has no direct financial implications, though increased use of cheaper areas outside the borough may generate longer-term savings.

Legally, the report sets out requirements under the Housing Act 1996, the Localism Act 2011 and relevant case law – notably Nzolameso v Westminster (2015), which requires councils to explain how they allocate out-of-borough accommodation.

The policy will come into effect once the statutory review function is formally brought in-house, scheduled for December 2025.