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Rise in homelessness across the country sparks a national crisis.

A report, commissioned by London Council, has revealed that 60,000 of London’s private renters are likely to become homeless by 2030 if the government decides to keep Local Housing Allowance (LHA)  frozen.

London Council’s Executive Member, Cllr Darren Rodwell. has called the sharp increase “unmanageable” and has called for “urgent government action”.

One in seven of London’s private renters are reliant on LHA to meet their housing costs. The report states that restoring LHA to cover at least 30% of local market rents would save the public finances in London more than £100m each year.

The predictions are rooted in London’s housing turbulence as London accounts for more than half (57%) of England’s total number of homeless households in temporary accommodation.

The report also found that only 2.3% of London listings on Rightmove in 2022-23 were affordable to those using the benefit to pay their rent – falling from 18.9% in 2020-21.

Cllr Darren Rodwell added, “London is the epicentre of the national homelessness crisis. 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.”

Boroughs across the city echo the warnings, predicting that they are set to overspend their homelessness budgets by £90m this year.