Homeless families to be helped by “groundbreaking” scheme
Kensington & Chelsea’s Leadership team has agreed a “groundbreaking” and “pioneering” scheme to use as much as £100 million from its pension fund to buy up to 250 homes for homeless families. The initiative, the first of its kind in the country, will “will provide vulnerable residents with stable, affordable and safe homes while significantly reducing the Council’s reliance on expensive and sometimes unsuitable options such as hotels, B&Bs and properties from private landlords.”
The scheme, the council says, will come at no cost to taxpayers, adding that the income generated by the council hopes to cover both the payments to the pension fund contributions, and ongoing management and maintenance cost. The council’s payments to the pension fund will be at a discounted rate compared to if the money was borrowed commercially.
“London is facing a growing homelessness emergency that is devastating lives and placing huge pressures on councils’ finances,” Cllr Elizabeth Campbell, Leader of Kensington and Chelsea Council, said. “It is going to take innovative, decisive action to tackle it effectively. “This is a pioneering partnership to potentially unlock hundreds of good quality homes for vulnerable families at no new cost to our taxpayers. It will also reduce the amount we spend on unsuitable and unsustainable temporary accommodation and provide stability and a brighter future for those who need it most.”
Under the new arrangement, homes bought will be leased to the council on a long-term basis, with the authority being responsible for collecting rent and managing the properties. The scheme will allow the council to meet its legal obligation towards homeless households including homeless families using “good quality homes.” It will also contribute to the first priority of the Council’s draft Housing Strategy 2025-2030, which “aims to provide a diverse supply of housing to help residents into settled homes.”
The decision was made by the Council’s Leadership Team at a public meeting on Wednesday 4 June 2025. You can watch the meeting in full and read a full report on our website.
For more updates on Kensington & Chelsea, visit EyeOnLondon Kensington & Chelsea.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
