A new contract will see 338 units at three sites in London Road, Croydon, provide accommodation for homeless people over the next 40 years.
Croydon Council has struck a deal with the buildings’ landlord Cheyne Social Property Impact Fund to continue using Concord House, Sycamore House and Windsor House as temporary accommodation.
The council will save around £5m in comparison to the previous lease by paying 30 per cent less each year under the new deal struck. Cheyne Social Property Impact Fund bought the sites in December from the previous freeholder.
The leases on all three buildings had been due to expire by 2025 after the council originally took them on in 2015 and 2016 to cut its use of expensive and less suitable nightly bed and breakfast accommodation for people avoiding homelessness.
Friday’s contract means two of the buildings – Concord House and Sycamore House – now have a 40-year lease, while Windsor House’s lease has been extended by 21 years. The council has also taken over from contractors the buildings’ day-to-day management, including repairs.
Councillor Alison Butler, deputy leader and cabinet member for homes, regeneration and planning, said: “We took on these buildings to give people avoiding homelessness good-quality temporary accommodation, and this contract means that we will continue to do so.”
Councillor Simon Hall, cabinet member for finance and treasury, said: “This council takes pride in making sure we manage our finances well, and this longer contract with Cheyne guarantees a better deal for Croydon taxpayers by delivering an annual saving of around £450,000.”