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Not quite unprecedented, council's dealt with similar levels of displacement during events like the 2012 floods.
But it never really gets any easier. The council have already reported that 77 out of 120 households have been put up in West London hotels. Yes, some of those are high rise but the luxury of a variety of options are something that local authorities have when dealing with the sudden displacement of 300-400 people. Of the remaining 43 households, some of them will be staying with family or friends. There's a lot of criticism of family and friends "bearing the burden" of rehousing but it can be a preferred option. Being in the presence of someone who will be able to identify of someone isn't coping or suffering from post-trauma stress can be a good thing. Another reason for using hotels rather than apartments (as well as the lack of ready availability).
The common practice in events like this is that firstly the MIRG will get a reception center open for displaced people to get into (300+ people necessarily means multiple centers). This gives the authority the opportunity to track as many people as possible right from the outset. They will then be moved to short-term accommodation such as a hotel and then on to long-term accommodation before permanent rehousing. This is designed to minimise the amount of traumatic and disruptive moves any person or family has to make.
If anything, money isn't really a big issue, it's dealing with traumatised people that's slows progress through the stages. I've heard anecdotes of people refusing to leave reception centers because they fear losing touch with what's going on.
That's what they are doing, or are trying to do, I believe.
I wouldn't expect it to be done well - the situation is unprecedented.