Housing crisis and social welfare
Housing crisis and social welfare
Housing Issues in Tower Hamlets
Over the past year, Tower Hamlets has experienced a 175% increase in vacant homes, the highest rise among London boroughs, with 960 more vacant houses compared to 2021. This occurs despite Tower Hamlets having one of the highest rates of homelessness in London and 21,249 households on the council house waiting list. Though Tower Hamlets excels in building affordable homes, the council confirmed that 70% of houses are rented, and there is significant overcrowding. This imbalance between demand and supply for affordable housing exacerbates waiting list times. Currently, Tower Hamlets has the third-longest council waiting list in London, behind Lambeth and Newham.
Since 2011, only one affordable home has been built for every six additional residents in Tower Hamlets, causing demand for affordable housing to far outstrip supply. In 2023, a letter of complaint signed by most of the council’s homelessness team warned the mayor that the housing service is “near collapse” due to unprecedented demand and miscommunication between managers and officers. The letter stated that applicants are being placed in hotels and B&Bs for longer than the six-week limit specified in homelessness guidance and legislation, with many staying in these unsuitable accommodations for over six months. Additionally, the Premier Inn hotel chain severed ties with the council over failures in managing homeless placements, forcing 160 families to relocate.
A potential solution is the New Homes Bonus, a central government grant for councils when long-term vacant properties are occupied. However, payments to the New Homes Bonus have decreased by £66 million this year, indicating that councils need to do more to ensure these properties are filled. The economic challenges facing the local council are similar to those of other housing associations in London, including balancing investments in existing portfolios with building new homes. Riverside has provided practical short-term support, such as help with bills, replacing household appliances, or covering travel costs for job interviews, to alleviate the housing crisis.
Tower Hamlets is the most income-deprived borough in London, exacerbating the affordable housing issue. With the borough’s rapid growth, high density, and severe income deprivation, and with the rate of new affordable homes on the decline, the waiting lists are set to increase, worsening the housing crisis for the foreseeable future.
References
Hasan , A., 2022. Tower Hamlets is worst borough in London for vacant houses, London: East London Lines.
Kersley, A., 2023. ‘Chaos’: Tower Hamlets housing service ‘near collapse’ with families housed in B&Bs, London: The Observer.
Olaseinde, D., 2024. Exploring the Tower Hamlets housing crisis, London: NELONDONER.