Lambeth Council will join a pan-London approach to tackle homelessness using modular housing units, as the borough faces an “unprecedented” demand for temporary accommodation.

Pan-London Accommodation Collaborative Enterprise (PLACE) was set up by a group of London’s boroughs earlier this year to tackle homelessness in the capital, with Lambeth Council recommended to join the scheme.

The not-for-profit, local authority-owned scheme uses transportable modular housing units to provide temporary accommodation for people needing a home.

More than 2,100 homeless households in the borough are living in temporary accommodation, according to the documents.

“The shortage and cost of housing across London means that many London boroughs, including Lambeth, are experiencing unprecedented demand for temporary accommodation to meet their statutory duty to homeless households,” the documents explained.

If part of the scheme, the council would be able to procure and own the accommodation for their own benefit on ‘meanwhile’ sites which are not currently being used.

“The pre-fabricated units will be installed on “meanwhile” sites that are awaiting permanent development, and then moved to other sites as required,” the documents continued.

“The temporary homes will be let by participating boroughs to homeless families as a more cost effective and better quality alternative to Bed & Breakfast or other nightly paid temporary accommodation.”

Lambeth currently has more than 2,100 homeless households living in temporary accommodation, with almost 60 per cent of these households residing outside of the borough.

The council is looking to “reduce reliance on expensive nightly paid annexe type accommodation, which accounts for the majority of out of borough placements and which places significant financial pressures on the Council,” according to the documents.

Lambeth Council raw data on expenditure shows the council spent more than £5.6m on bed and breakfast accommodation between October and December last year.