Homeless Medway families have moved into a converted office block originally intended exclusively for needy Londoners.

Medway Council has taken over a floor of the 11-storey Anchorage House in Chatham High Street in a bid to ease the alarming increase in the number of people needing temporary accommodation.

Cllr Naushabah Khan (Lab), portfolio holder for housing, said the authority had negotiated a discount deal with the landlord for nine of the 81 self-contained flats.

Controversy was sparked when it was announced that the entire building would be rented out by Newham Council in east London to accommodate 81 families – in preference over people in Medway needing a roof over their heads.

But since then negotiations have taken place between the two authorities and Medway is now taking over the ground floor.

Cllr Khan said: “We are pleased we have been able to work with Newham Council to secure a number of units at Anchorage House for Medway residents, at a reduced rate, and we will be continuing to work closely with Newham Council to address any issues that may arise to ensure the impact on Medway and our residents is mitigated and limited.

“The national housing crisis is well documented, but we are committed to finding new and innovative ways to tackle it here in Medway.

“Looking at temporary accommodation in particular, at our most recent full council meeting proposals for the council to buy around 150 properties, increase the number of long-term lets on our books and the decision to set up our own letting agency were all agreed.

“This type of forward thinking will help us tackle the shortage of temporary accommodation and importantly give us the opportunity to intervene at an earlier stage to help prevent the need to people to go into temporary accommodation in the first place.”

Last month, the council said it planned to invest £42 million into 150 properties around the Towns to house rough sleepers and those at risk of losing their homes.

The idea is that it operates the temporary accommodation and explores the opportunity of launching a letting agency rather than relying virtually on the private sector as it currently does.

It’s hoped this will reduce costs and drive up standards in the maintenance of properties, as well as make the ability to house people less susceptible to changes in the private landlord market.

There are now 485 “temporary accommodation” households in the Towns compared to 350 last year and it’s estimated that this hike will impact an extra £2.7m on the budget.

The authority currently has 35 units of its own and needs a minimum of 400 to build up its housing stock.

There’s been a three-month delay in moving tenants into the tower block because of concerns raised by Kent Fire and Rescue Service over safety risks.

Fire chiefs had raised alarms over escape routes, but issues have now been resolved.

“The necessary works have since been completed and the enforcement notice has been removed...”

Suzanna Chisholm, the fire service’s head of building safety, said: “Following an inspection at Anchorage House in High Street, Chatham, our officers found several safety concerns relating to means of escape and general fire safety precautions.

“As a result, an enforcement notice was served to the responsible person under The Regulatory Reform (Fire Safety) Order 2005 and published on the National Enforcement Register in January 2024.

“The necessary works have since been completed and the enforcement notice has been removed. KFRS continues to work with the responsible person to provide support and advice, as necessary.”

The £9m refurbishment of the building, which used to be home to Medway County and Family Court, was carried out by Theori Housing Management Services.

The London-based private company, which has 23 years experience of working in this sector, will provide management and maintenance on behalf of the owner.

It specialises in working with local councils, mainly in London and the south east, to provide much-needed temporary accommodation, particularly in areas where there is a housing crisis.