Tower Hamlets converts Canary Wharf offices into 180 temporary homes
The council’s purchase of four Marsh Wall buildings aims to ease a rising homelessness crisis and curb a £5.9 million budget shortfall.
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The council signed a ten‑year lease for the site and will re‑configure the buildings into 180 short‑term homes. The homes will be allocated to families currently living in temporary accommodation, reducing the need for out‑of‑borough placements and nightly paid stays.
Why the purchase matters
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Tower Hamlets currently supports more than 3,100 households in temporary accommodation, including roughly 2,700 families. The borough’s homelessness rate is climbing at an annual pace of 11 per cent, according to council data. Mayor Lutfur Rahman said the new homes will keep families close to schools, health services and local support networks.
Every family deserves a safe and secure place to live close to their communities, schools and support networks.
Lutfur Rahman, Mayor of Tower Hamlets
Council finance officer Cllr Abu Talha Chowdhury highlighted the fiscal strain, noting that the 2024/25 homelessness budget exceeded expectations by £16.9 million. He added that the current financial year is projected to run £5.9 million over budget, prompting the council to seek cost‑effective solutions such as repurposing existing buildings.
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What the new homes will look like
The plan outlines 167 two‑bedroom units and 13 three‑bedroom units. Each unit will be designed to meet the needs of families, with space for children and access to communal areas. The council expects the conversion to reduce reliance on costly nightly accommodation and to keep children in local schools.
The former Lyca Mobile premises were vacated in 2025 after the company relocated abroad following a dispute with HMRC. The council’s acquisition marks the first major use of commercial space for temporary housing in the borough.
Next steps
Work on the conversion is set to begin later this year, with the council planning to hand over the first units in early 2027. Residents who are currently in temporary accommodation will be prioritised for allocation, and the council will publish a detailed timeline on its website.
Questions this report answers
+How many new homes will the scheme create?
The council plans to convert the four buildings into 180 short‑term homes, comprising 167 two‑bedroom flats and 13 three‑bedroom flats. These units will be offered to families currently in temporary accommodation.
+What is the current scale of temporary accommodation in Tower Hamlets?
Tower Hamlets reports more than 3,100 households living in temporary accommodation, of which about 2,700 are families. This figure underpins the council’s urgency to expand local housing options.
+How much has the homelessness budget overspent?
The homelessness budget exceeded its allocation by £16.9 million in the 2024/25 financial year. For the current fiscal year, the council forecasts an overspend of £5.9 million if no additional measures are introduced.
+When will the converted homes be ready for residents?
The conversion work is scheduled to start later in 2026, with the first units expected to become available in early 2027. The council will update residents as the programme progresses.
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