Raise housing support to prevent 60,000 London renters becoming homeless, say boroughs

By Cesar Medina

8th Nov 2023 | Local News

London private renters could become homeless within the next six years if Local Housing Allowance remains frozen (credit: Arthur Edelmans & Nathan Dumlao/ Unsplash).
London private renters could become homeless within the next six years if Local Housing Allowance remains frozen (credit: Arthur Edelmans & Nathan Dumlao/ Unsplash).

New research finds nearly 60,000 Londoners in private rent could be homeless over the next six years if the government keeps Local Housing Allowance freeze.

London Councils has 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.

The cross-party group calculates that 22,000 households equals 58,740 individual. 28,000 of them children.

One in seven London private renters are reliant on LHA to meet their housing costs the research found.

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

London Councils says most of the savings would come from reduced pressure on London boroughs' homelessness services, but also from lower costs to other parts of the public sector such as the NHS and social care.

Amid worsening homelessness pressures in the capital, London Councils is "urging" the government to end the freeze on LHA.

The policy measure is one of the group's top priorities in its submission to the government's upcoming Autumn Statement, which will set out future spending plans.

Councillor 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."

Cllr Rodwell added: "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."

The capital accounts for more than half (57%) of England's total number of homeless households in temporary accommodation.

London Councils' most recent figures show that almost 170,000 Londoners are currently homeless and living in temporary accommodation arranged by their local authority – equivalent to around one in 50 Londoners overall and one in 23 children in the capital.

Hounslow Council have been approached for comment.

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