London Councils calls for more support to prevent homelessness

According to new analysis for London Councils, almost 60,000 Londoners living in the private rented sector are likely to become homeless over the next six years if the government maintains the freeze on Local Housing Allowance (LHA).

London Councils commissioned independent research from Alma Economics that estimates an additional 16,500 to 22,000 London households will become homeless by 2030 unless LHA is raised.

It is estimated that 22,000 households equates to 58,740 individuals – including 28,000 children.

At the moment, one in seven private renters in London are reliant on LHA to meet their housing costs.

The research suggests restoring LHA to cover at least 30 per cent of local market rents would save the public finances in London more than £100m each year.

Most of this would come from reduced pressure on homelessness services, but it would also come from lower costs to other parts of the public sector such as the NHS and social care.

London Councils is urging the government to end the freeze on LHA.

London accounts for more than half (57%) of England’s total number of homeless households in temporary accommodation and the most recent figures show that almost 170,000 Londoners are currently homeless and living in temporary accommodation arranged by their local authority. This is equivalent to around one in 50 Londoners overall and one in 23 children in the capital.

Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, said: "Raising Local Housing Allowance is vital for getting a grip on the homelessness crisis.

“London’s homelessness pressures are already enormous and unsustainable. On current trends, almost 60,000 more London renters are set to become homeless in the coming years.

“London is the epicentre of the national homelessness crisis. The situation is increasingly unmanageable and requires urgent government action. We cannot continue in this disastrous direction.

“Just as the government boosted LHA during the Covid-19 pandemic to prevent a wave of mass homelessness, we need a similar emergency response to the situation today. An increase in LHA will help low-income households pay their rents and avoid homelessness, which can be so devastating to families and bring massive costs to local services.”