London councils and their affiliated housing companies have collectively invested over £140 million in acquiring approximately 850 homes across England since 2017. This initiative aims to relocate homeless individuals and families away from the capital, primarily focusing on towns and cities in the southeast and east of England, which are already grappling with their own homelessness issues.

Recent data analysis indicates that councils have predominantly concentrated their purchases in areas experiencing high levels of homelessness, with a noticeable rise in acquisitions in the Midlands and plans to expand into the northeast.

For instance, Waltham Forest and Bromley councils have channeled nearly £80 million into over 500 homes in locations like Harlow, Thurrock, and Maidstone, using properties to meet their homelessness obligations by permanently rehousing individuals from London.

Brent council has invested more than £18 million in 75 properties across Milton Keynes, Hemel Hempstead, and Slough, while Barnet council has allocated over £10 million for nearly 70 properties in Peterborough and Luton.

Both councils utilized wholly-owned companies to facilitate these purchases.

In addition, Housing Gateway, a company entirely owned by Enfield council, spent £13 million in 2018 on Greenway House, a renovated office block near Harlow, which provides temporary accommodation through its 83 flats.

Councils have increasingly turned to relocation firms to assist with permanently moving homeless individuals, but recent trends suggest that some local governments are shifting towards managing these relocations internally.

Enfield council announced plans to acquire 28 homes near Liverpool, which will initially serve as temporary accommodation with the goal of securing long-term housing for relocated families.

Redbridge council, having spent over £10 million on 55 properties since 2020, has recently purchased homes as far away as Coventry and Leicester, primarily intended for temporary accommodation with future plans for private discharges.

The most sought-after location for these council purchases remains Harlow, with a total of 164 homes obtained since 2017.

The concentrated purchasing in areas with pre-existing homelessness challenges has raised concerns.

In Basildon, Essex, where approximately 700 households are in emergency accommodation, 84 homes have been acquired by London councils.

Basildon's council leader has acknowledged the difficulty of accommodating local residents amid increasing demands from London councils.

Recent government statistics reveal that the number of households placed in temporary accommodation outside their home boroughs has reached record highs, with a 39% increase reported in the last year.

As a response, Labour MPs have called for a reassessment of the strategy regarding out-of-area placements, citing detrimental effects on vulnerable families and their children.

Polly Neate, chief executive of the housing charity Shelter, emphasized the distress caused by these moves, often leading families to be displaced miles from their support networks.

Local authorities report that financial constraints and a shortage of social housing are contributing factors to the challenges they face in meeting homelessness obligations.

While councils such as Waltham Forest clarify that their housing companies aim to provide quality homes while meeting the demands of homelessness, others like Bromley have indicated that limited funding as an outer London borough necessitates broader searches for accommodations.

Barnet council reiterated its commitment to prioritizing local placements, stating that no homes outside its borders have been purchased since 2020, while Redbridge continues to emphasize its goal of transitioning temporary accommodations into long-term rentals for homeless individuals.

Brent council noted that the majority of its acquisitions have remained within London, focusing on addressing the substantial waiting list of 34,000 residents seeking housing.