Image: Istock
Working together to tackle London’s TA crisis
How Project 123 aims to transform the way the capital sources temporary accommodation
INNOVATION & IMPROVEMENT
Angie Hooper
New Business Director, L&Q
Angie Hooper
New Business Director, L&Q
Issue 83 | April 2026
When I talk about the housing crisis in London, I often come back to one shocking truth: thousands of families in our city are living in temporary accommodation, and far too many children are growing up without a stable place to call home. Last year we reached the point where one in every 23 children in London was homeless, and the situation has worsened since.
That statistic is the reason Project 123 was created. It’s a collaboration between London Councils and the G15 housing associations, designed to confront the temporary accommodation crisis head-on. And I am proud to be part of this collective effort.
The situation
Across the capital, more than 61,000 households – around 170,000 people – live in temporary accommodation. That includes thousands of families placed in B&Bs, hotels, nightly-paid accommodation and private rented homes that are often unsuitable. Every day, councils spend more than £5 million just to keep these families housed, a figure that has climbed dramatically in recent years.
At the same time, the financial position of London boroughs has become increasingly precarious. A recent analysis found a £740 million annual shortfall caused by subsidy rates that have been frozen for 14 years and by spiralling rents in the private sector. For some councils, temporary accommodation is now the biggest single financial risk they face.
As housing providers, we cannot stand by and watch this unfold. That is why Project 123 matters.
households (around 170,000 people) live in temporary accommodation in London
is spent every day by London boroughs to keep these families housed
annual shortfall caused by subsidy rates that have not increased for 14 years and by spiralling rents in the private sector
Why Project 123
Project 123 is about bringing the collective capacity of the G15 and the leadership of London Councils into one space. It grew out of a shared understanding that no sector can solve this alone.
At the emergency summit hosted in August 2023, we brought together borough housing directors, finance teams, G15 members and the GLA to start designing practical, deliverable solutions.
This wasn’t a theoretical exercise. It was a hands-on workshop aiming to identify what we could do quickly, what we could scale, and what could genuinely reduce pressure on boroughs.
Under Project 123, we are exploring a set of interventions that could transform how London sources temporary accommodation.
“Under Project 123, we are exploring a set of interventions that could transform how London sources temporary accommodation.”
“We are looking at opportunities for modular housing on development sites that are not yet ready for construction.”
Possible interventions
First, we are examining how housing associations can make better use of existing stock. G15 members are looking at options to sell or lease empty homes, including those awaiting remediation works or those that cannot currently be sold on the open market. These homes could be leased to boroughs on fixed terms, creating immediate supply while longer-term solutions are developed.
Second, Project 123 is testing how we can share risk, funding and capacity across boroughs and associations. That includes exploring bulk purchases of unsold new build properties at discounted values, using recycled grant, and examining more flexible financing models.
Third, we are looking at opportunities for modular housing on development sites that are not yet ready for construction. This could provide high-quality temporary homes at pace and scale.
Together, these ideas form a toolkit that could significantly increase the supply of suitable homes and dramatically reduce reliance on costly nightly-paid accommodation.
A shared responsibility
For me, the central message of Project 123 is this: London’s temporary accommodation crisis cannot be tackled by any one organisation. We must act together – housing associations, boroughs, the GLA, central government and our communities.
The crisis we are dealing with is not abstract. It is children growing up in hotel rooms. Families travelling for hours to reach school. Councils making impossible decisions to balance budgets. And housing providers struggling to build at the pace London needs.
Project 123 is not the final answer. But it is a step towards a more coordinated, more ambitious and more compassionate response. And if we can keep that partnership spirit alive, I believe we can create solutions that give every family in London the secure, stable home they deserve.
Event
We are pleased to invite you to Tackling London’s temporary accommodation crisis: a Project 123 call to arms and Temporary Accommodation Network event, hosted by Devonshires Solicitors and Campbell Tickell.
Please note, places for this event are limited. Register now.
8 June 2026 | 9am - 12.30pm | The Furniture Makers Hall, 12 Austin Friars, London EC2N 2HE
“The crisis we are dealing with is not abstract. It is children growing up in hotel rooms. Families travelling for hours to reach school. Councils making impossible decisions to balance budgets.”
