Havering Council approved plans to turn Eastgate House in Basildon into temporary accommodation at its cabinet meeting on Wednesday (January 22).
The move will save the council £1.8 million over a ten-year period covered by the lease, a council report shows.
If planning consent is granted, 34 families could be housed in the office building by February 2026.
Over the past 12 months, the local authority has placed “high volumes of families” into “high cost” chain hotels.
According to the report, this has “created enormous pressure” on the council’s housing budget.
Last month, Havering’s cabinet also approved plans to convert Chesham House, a former office building in Romford, into 55 homes for homeless families.
It comes as the council faces a £75 million budget deficit over the next financial year.
Kathy Freeman, Havering’s director of resources, said the council’s current position is “untenable” and that there needed to be “fundamental systemic changes” to how local authorities are funded.
Alongside using converted office buildings to house families, the council will also build 18 temporary “modular homes” on land off Waterloo Road and Queen Street in Romford.
The site was initially cleared for the Waterloo Estate, a planned estate of 1,380 new homes.
However, Havering councillors said last week that work was not expected to begin for another “five to seven” years.
Councillor Natasha Summers, cabinet lead for climate change and housing need, said: “Like many councils across the country, Havering is facing a housing crisis.
“Homelessness due to eviction of tenants from private rental sector is beyond the council’s control and it is happening more and more, as private landlords sell up as a result of rising taxes, increased mortgage rates and additional obligations on landlords.
“Given the shortage of social housing and the council’s financial challenges, establishing new cost-effective temporary housing solutions is a priority.
“New approaches such as the leasing of converted office buildings and the development of modular homes at the Waterloo Estate enable us to provide good quality temporary homes for the families and individuals who need them most.”
