A surge in the number of homeless residents in Bexley this year has caused a £1m overspend in the council’s housing budget.

Officers at Bexley Council are forecasting the extra outgoing on a temporary accommodation budget that was originally hoped to bring in £600k worth of savings. 

Bosses told councillors this week it was because more people are being made homeless, but there are less socially rented properties available to house them.

Paul Thorogood, director of finance, said: “The budget has been impacted by a number of reasons, with two main factors reduction of supply and increased number of people accepted as homeless.

“It is worth noting that the pressure has been partially offset by variances and income.”

There are more than 1,380 households in temporary accommodation – hundreds of whom have been placed in Dartford, Greenwich and Gravesham because of a lack of houses in Bexley.

MORE - Hundreds on Bexley housing waiting list placed out of borough

The council is set to file a balanced budget for next year,  but a growing demand for houses in the borough has caused headaches about the years ahead.

It is expected that if growth continues at the same rate there will be an overspend of £2.2m on housing for 2019/20.

The council expects it will have to call on its contingency of about £1.9m for next year – money set aside for unexpected costs.

Cabinet member Alex Sawyer said the pressure was down to a lack of affordable housing – but stressed the council is tackling the issue.

News Shopper:

Cllr Sawyer said: “I find it disgraceful that the fifth largest economy has got the issue of housebuilding, homelessness and affordable housing and rental so spectacularly wrong.

“This administration believes everyone should be the best that they can.

“Children deserve the best start in life, but there are significant number of children in temporary accommodation.

“One child in temporary accommodation is one child too much – as we know temporary accommodation is far from temporary.”

The council’s budget for 2019/20 has earmarked £5m for the purchase of 17 more properties – on top of funding from the last four years.

MORE - When will it snow in SE London and N Kent this week?

“We continue to work with our partners Orbit and L&Q  to provide 60 affordable properties. This is in addition to other schemes that will in time increase the flow,” Cllr Sawyer said.

“We have upped the tempo in our cross-council approach to housing. We remain focused in supporting residents out of temporary accommodation and providing good quality affordable housing across the borough. I am confident that we can deliver.”

The council’s financial plans took their next steps on Monday, with next year’s budget set to come forward in March.