Our latest research shows that one in 50 Londoners are now homeless and living in temporary accommodation.
We want to work with MPs to raise awareness of the increasingly unmanageable homelessness crisis in London and our key asks of government. We are calling for emergency action to help low-income households meet their housing costs and to address the enormous financial pressures facing councils.
Homelessness pressures across the capital are fast becoming unmanageable
Our regular survey of London boroughs provides a more up-to-date overview of London’s homelessness crisis than the government’s homelessness data, for which there is a six-month lag in publication timeframes. Key findings from the latest survey include:
- We estimate there are almost 170,000 homeless Londoners living in temporary accommodation. This figure includes over 83,000 children, meaning on average at least one child in every London classroom is homeless.
- The number of households entitled to homelessness support from a London borough (i.e. owed a homelessness prevention or relief duty) increased 15.2% between April 2022 and April 2023.
- Due to the lack of alternative housing, boroughs are becoming more reliant on the last-resort option of placing homeless families in B&B accommodation. The number of families placed in B&Bs doubled between April 2022 and April 2023 (up from 1,543 to 3,242) – an increase of 110%.
- The number of families living in B&Bs beyond the six-week limit increased by 781% – from 146 in April 2022 to 1,287 in April 2023. Families will only be accommodated in B&Bs for longer periods when no other options are available for the borough to fulfil its housing duty, and boroughs will still work to find more suitable accommodation as quickly as possible.
- Rising homelessness numbers are putting immense strain on boroughs’ finances. London Councils estimate that boroughs are collectively spending £60 million each month on temporary accommodation costs. We estimate that the net deficit across London boroughs’ homelessness services is on course to reach £244 million in 2023-24. This is an increase of 37% on last year.
Sharp fall in private rental listings is a major factor behind homelessness pressures
Recent research commissioned by London Councils and partners shows a 41% reduction in the number of London properties available for private rent since the Covid-19 pandemic. The study, undertaken by Savills and the LSE, also found that only 2.3% of London listings on Rightmove in 2022-23 were affordable to low-income households using Local Housing Allowance to pay their rent.
The reduction in private rental accommodation is a major factor behind the capital’s fast-rising homelessness pressures, including challenges with securing temporary accommodation for homeless families.
What London boroughs need from London MPs
The current crisis will only get worse without significant government intervention. London Councils needs London MPs to highlight this issue in Parliament and encourage the government to take the following steps:
- Raise Local Housing Allowance (LHA). LHA has been frozen since 2020 despite private rents continuing to increase. LHA should be increased to cover at least 30% of local market rents – a policy the government adopted successfully at the height of the Covid-19 pandemic.
- Support councils to buy accommodation sold by private landlords. The government should build on initiatives like the Local Authority Housing Fund by providing increased capital investment so that councils can acquire homes as they exit the private market.
- Boost Homelessness Prevention Grant Funding. Councils require an emergency funding increase to ensure local services have the resources needed in the face of rising levels of demand for support.
- Increase Discretionary Housing Payments. Councils use these payments to help residents in financial crisis meet their housing costs. They are an essential homelessness prevention tool, but government funding for Discretionary Housing Payments in 2023-24 has been frozen at 2022-23 levels.
- Bring forward a cross-departmental strategy to reduce homelessness. Tackling homelessness must become a major priority at a national level with government departments working together – in addition to key partners such as local authorities – as effectively as possible.
