The building committee, chaired by Sir Harold Gillett, Lord Mayor of London, purchased the site in 1956, and assigned Ralph Tubbs to design the house in the modern architectural style. The foundation stone was laid in 1959 by World Chief Guide Olave, Lady Baden-Powell, and it was opened in 1961 by Queen Elizabeth II. The largest part of the £400,000 cost was provided by the Scout Movement itself. Over the years, the house has been refurbished several times, so that it now provides modern and affordable lodging for Scouts, Guides, their families and the general public staying in London. The building also hosts conference and event space for hire.

From 1974 to 2001, Baden-Powell House was the headquarters of The Scout Association, for which a dedicated extension to the house was completed in 1976. In April 2001, the headquarters formally moved to new accommodation at Gilwell Park. As the owner of Baden-Powell House, The Scout Association receives a net income out of the revenues of approximately £1.5 million.

Baden-Powell House provides a hostel for people visiting London. In the period 2004-2006 the hostel participated in the Youth Hostel Association.