For Local Authorities — Four Square Partners

The pressure on your general fund

The subsidy gap is no longer manageable on current placements alone.

London accounts for approximately 56% of all temporary accommodation placements in England — more than 74,000 households as of mid-2025. The DWP reimbursement for temporary accommodation has been frozen at 90% of the January 2011 Local Housing Allowance rate, while costs have risen continuously. The council's share of the net cost has grown from 7.1% of total spend in 2009/10 to 50.6% in 2024/25.

The subsidy gap

The gap between what councils spend on temporary accommodation and what DWP reimburses grew by approximately 244% between 2019 and 2025. Eight London boroughs spent approximately £543 million on TA in 2024/25. Seven boroughs have requested Exceptional Financial Support to avoid a Section 114.
Out-of-borough placements

London is responsible for approximately 81% of all out-of-area temporary accommodation placements in England. Section 208 of the Housing Act 1996 requires boroughs to accommodate households in-borough so far as reasonably practicable. Every out-of-area placement is a compliance risk and a cost to families.
B&B nightly-paid

Nightly-paid B&B and hotel placements are the most expensive and least suitable form of temporary accommodation, particularly for families with children. Reducing reliance on spot-booked nightly placements is a direct route to reducing the subsidy gap and improving suitability outcomes.

The supply problem is also an asset problem. London has tens of thousands of square feet of long-term vacant commercial offices. Four Square connects those two facts.

What we deliver

A turnkey TA supply pipeline — from vacant office to occupied home.

Four Square reactivates long-term vacant commercial buildings — offices and similar Use Class E properties — as managed temporary accommodation. We handle the entire process: feasibility, planning, conversion works, licensing, compliance and ongoing building management. The council's role is to nominate households.

The nomination agreement

Four Square and the council enter a nomination agreement: Four Square holds the head lease from the building owner; the council holds nomination rights to place households into the accommodation. The council does not take a direct lease — it uses a licence or non-secure tenancy for households under the homelessness duty, preserving its ability to recover possession when the duty ends.

The fee is structured to sit within the LHA-linked reimbursement envelope — significantly below the cost of nightly-paid B&B, and benchmarked transparently against your current placement costs.

A housing officer discussing a case with a family inside a managed Four Square property in a London borough.

No council capex

Four Square funds the conversion works. The council pays a per-unit fee during occupation; no capital expenditure is required.
Fixed term and auditable

Arrangements run for 2–5 years with agreed break clauses. Full inspection rights, KPIs and reporting obligations are written into the contract.
In-borough, by design

Every building is identified within the borough you nominate. No out-of-area placements, no travel burden on families.

The accommodation

Two types of unit — one to match each household.

Each conversion is designed to deliver a mix of accommodation to match the households your borough needs to house. Both types meet the suitability standards required under s.206 of the Housing Act 1996 and the Homelessness (Suitability of Accommodation) (England) Order 2012.

For single adults

HMO-format cluster accommodation

Open-plan office floorplates are converted into HMO-format clusters: private, lockable bedrooms with shared kitchen and bathroom facilities on each floor. Licensed as an HMO under mandatory or additional licensing before any resident moves in.

Private, lockable bedroom per resident
Shared kitchen and bathrooms, built to HMO specification
Mandatory or additional HMO licence in place before occupation
Part B fire safety, detection and suppression to Building Regulations standard
Suitable for single adults under the council's homelessness duty

For families

Self-contained units

Where floorplates allow adequate space, upper floors are divided into self-contained units: private entrance, dedicated kitchen, bathroom, living space and bedrooms. All units are built to the Nationally Described Space Standards.

Self-contained — own entrance, kitchen and bathroom
Nationally Described Space Standards: minimum 37 m² for a 1-bed; 50 m² for a 2-bed
Suitable for families under the Homelessness Reduction Act 2017
Building Regulations sign-off before occupation
Consistent with the London TA Quality Standards

Not a hostel. Not property guardians. Residents are properly housed occupants under the council's homelessness duty — with the statutory protections that entails. Buildings meet fire safety, HMO and Building Regulations standards before anyone moves in. Four Square is not, and will never operate as, a property guardian scheme.

Procurement & partnership

A transparent route — we acknowledge the procurement question directly.

We know that procurement and value-for-money are the first questions your legal and finance teams will ask. We address them directly, not around them.

Procurement route

Framework or single-tender

A Four Square partnership can be structured via an existing TA procurement framework — or, where a framework does not apply, as a justified single-tender award, documented against the council's procurement rules and supported by benchmarking evidence. We work with your procurement team from the outset.

Value for money

Benchmarked against nightly-paid

The fee per unit per week is fixed, transparent and benchmarked against your current nightly-paid placements for equivalent household types. We provide the comparison in writing. The aim is to close the gap between what you spend and what DWP reimburses — not to add to it.

Contract

Nomination agreement — fixed term

The nomination agreement sets out: household referral and acceptance process; suitability standards; inspection rights; reporting obligations; fee structure; break clauses (typically 6 months' notice by either party after the initial fixed period); and the process for ending the arrangement at term.

Safeguarding

Standards written into contract

Suitability under s.206 Housing Act 1996, fire safety, HMO licensing, Building Regs sign-off, monthly safety inspections, safeguarding policy, and DBS-checked staff — all contractually required and subject to council inspection rights with reasonable notice.

Tenancy type

Excluded licence / non-secure tenancy

Households are placed under excluded licence or non-secure tenancy — the standard mechanism for TA under the homelessness duty. This preserves the council's ability to recover possession when the Main Housing Duty ends or a settled offer is made, without creating a secure tenancy.

Planning & compliance

All applications handled by Four Square

Class MA prior approval, HMO licence, Building Regulations, fire safety — all managed by Four Square. The council does not carry the planning or compliance burden. We provide evidence of all approvals and licences before households are referred.

Your questions

We know what your legal and finance teams will ask.

How does this go through procurement?

A Four Square partnership can be accessed via an existing TA or PSL procurement framework where one exists — we can advise on which frameworks are applicable in your borough. Where a direct award is the correct route, we support your team in documenting the justification against your Standing Orders and procurement rules, including benchmarking evidence against current nightly-paid costs. We do not ask boroughs to navigate procurement alone.

What guarantees do we have on quality and safeguarding?

Suitability standards (s.206 Housing Act 1996 and the 2012 Suitability Order), HMO licensing, Building Regs sign-off, a qualified fire engineer's sign-off, monthly safety inspections, a safeguarding policy aligned to the borough's own framework, DBS-checked staff, and full inspection rights with reasonable notice — all are contractually required and not discretionary. The borough holds inspection rights and a right to require remediation on a defined timescale for any compliance gap.

Will this create secure tenancies we cannot end?

No. Households are placed under excluded licence or non-secure tenancy — the standard legal mechanism for temporary accommodation under the homelessness duty. This preserves the council's ability to recover possession when the Main Housing Duty ends (for example, when a settled offer is made or the household's circumstances change) without creating a secure tenancy. The arrangement is legally consistent with standard TA practice.

What is the political risk of being associated with converting offices for homeless families?

The reputational framing matters. The model is: a vacant building in the borough, which was an eyesore and a cost to its owner, is brought back into use as managed, temporary community housing — on a fixed term, to proper standards, inside the borough. The exterior remains commercial in character. The alternative — continued out-of-area placements, or ongoing B&B spend — is typically a harder story to defend publicly. We provide a member briefing pack and can support the communications approach from the outset.

What happens at the end of the arrangement?

The nomination agreement sets out a clear wind-down process: a minimum notice period (typically 6 months from either party); a programme for household move-on, agreed with your housing team; and a handback date for the building. Four Square manages the household move-on in coordination with your housing options team. Residents remain under the council's homelessness duty throughout, and their housing pathway continues — the arrangement ends, but the obligation does not.

Start a conversation

Request a borough briefing — we'll bring the data.

We prepare a borough-specific briefing: the volume of vacant commercial space identified in your area, the indicative unit numbers, the relevant planning routes, and a cost comparison against your current nightly-paid spend. No commitment — just a grounded picture of what is possible in your borough.

Request a borough briefing Email us directly

Local authorities & housing teamsHousing@foursquare-partners.com

In-borough homes, not out-of-area placements.