The £11m allocation is expected to buy 200 homes to be placed on temporary sites across London. The manufacturer with the supply contract has yet to be revealed.
There are currently more than 54,000 homeless households described as living in temporary accommodation in London – typically in privately rented flats, B&Bs or hostels.
The prefab initiative is run by the Pan-London Accommodation Collaborative Enterprise (PLACE), a not-for-profit company hosted by the London Borough of Tower Hamlets and supported by the umbrella body London Councils.
PLACE said that its prefabricated units would “have the quality of permanent housing”, with good insulation and energy performance.
Cllr Darren Rodwell, London Councils’ executive member for housing & planning, said: “PLACE will deliver new family-sized housing for homeless Londoners in their borough – close to their schools, jobs and support networks – and provide a high-quality alternative to other forms of temporary accommodation.”
Mayor of London Sadiq Khan is backing the scheme. “I’m pleased to support this new initiative that makes use of modular construction and temporarily vacant sites to help ease some of that pressure and make a real difference to the families involved,” he said.