A hostel near Euston station which served the homeless for 18 years has been forced to close due to renovation costs.
Olallo House shut on Tuesday 31 March after internal estimates placed the bill between £800,000 and £1million.
It helped more than 3,000 people during its tenure and was the only residence of its kind in the UK to give in-house support to outpatients – often ineligible for benefits and social housing – to complete courses of intensive medication.
One former staff member, who asked not to be named, said: “Olallo was a completely unique service.
“There is no replacement for the model which we created.
“We worked with people who had mental health problems and no recourse to public funds overseeing their medication.
“Once Olallo is gone there will only be treatment plans, with no staff.”
Set up in 2008 to prevent deaths by tuberculosis (TB) among the homeless, who were sometimes discharged with six months’ medication and no space to store it, Olallo House tripled its residents’ chances of finishing treatment, according to a UCL study.
Rough sleeping has risen by 63% in London since 2015, while data from the Health Security Agency showed TB rates surpassed pre-Covid levels in 2024.
However, the Victorian building required refurbishment in many areas, including a replacement for the water system and piping.
A spokesperson for Saint John of God Hospitaller Services (SJOG), the charity which managed Olallo House, said: “In the period between the decision being made and the closure date, significant efforts were undertaken to ensure that everyone living at Olallo House was supported to move on safely.
“The service was based in an ageing building that required ongoing and increasingly costly investment to ensure it remained safe for both the people living and working there.
“The building was not owned by SJOG, and as the lease was approaching its end, a comprehensive review was carried out regarding the long-term viability of the service.
“As a result, the charity made the difficult decision to close Olallo House, with the closure taking effect on 31 March 2026.”
More than four-fifths of outgoing Olallo House residents left with a job and permanent housing, according to Independent Catholic News, and the service featured at the 2021 London Homelessness Awards.
It was also a safehouse for survivors of modern slavery and trafficking, working under the Home Office’s National Referral Mechanism for victims.
The SJOG spokesperson added: “Olallo House was a highly innovative service, truly one of a kind, and the team were widely recognised for their achievements.
“We would like to thank the staff, partners and supporters who contributed to the success of Olallo House over many years, and above all the people who trusted the service during a critical time in their lives.”
Feature image: Joe Rattue
Join the discussion