London Councils say Covid-19 pandemic and cost-of-living have contributed to the increased need for temporary accommodation.
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Councils are spending £90m per month on temporary accommodation for people who are homeless, London Councils data reveals.
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The cross-party organisation that represents London’s 32 boroughs is asking the government for more support.
They warn that council budgets are in “critical danger” as they try to keep up with rising rates of homelessness.
The number of homeless people seeking support per borough increased by 14.5% between September 2022 and September 2023.
The city has the highest rate of homelessness in England. According to the government, 57% of those seeking temporary accommodation live in London.
Councils have reported that the issue has been worsened by the Covid-19 pandemic, as well as the cost-of-living crisis.
London Councils say that another factor contributing to the 40% rise in spending on temporary accommodation is the “turbulence” in the city’s rental sector.
Last year, a study from LSE and Savills found that properties of three bedrooms or less listed for rent decreased by 36% since the pandemic.
Some residents in Lambeth were evicted after the council bought back their privately rented homes to repurpose them as temporary accommodation for homeless people.
London Councils are asking the government to remove the cap on Local Housing Allowance payable for temporary accommodation that has been in place since 2011. This would mean that local authorities would be fully reimbursed for their spending.
They will present their spring budget to the treasury on the 6 March.
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Headline£90m monthly spending on temporary accommodation risks bankruptcy, council association warns
Short HeadlineHomelessness spending risks bankruptcy, says council association
StandfirstLondon Councils data reveals that spending on temporary accommodation for the homeless rose by 40% last year.
Councils are spending £90m per month on temporary accommodation for people who are homeless, London Councils data reveals.
Listen to this article – powered by AI:
The cross-party organisation that represents London’s 32 boroughs is asking the government for more support.
They warn that council budgets are in “critical danger” as they try to keep up with rising rates of homelessness.
The number of homeless people seeking support per borough increased by 14.5% between September 2022 and September 2023.
The city has the highest rate of homelessness in England. According to the government, 57% of those seeking temporary accommodation live in London.
Councils have reported that the issue has been worsened by the Covid-19 pandemic, as well as the cost-of-living crisis.
London Councils say that another factor contributing to the 40% rise in spending on temporary accommodation is the “turbulence” in the city’s rental sector.
Last year, a study from LSE and Savills found that properties of three bedrooms or less listed for rent decreased by 36% since the pandemic.
Some residents in Lambeth were evicted after the council bought back their privately rented homes to repurpose them as temporary accommodation for homeless people.
London Councils are asking the government to remove the cap on Local Housing Allowance payable for temporary accommodation that has been in place since 2011. This would mean that local authorities would be fully reimbursed for their spending.
They will present their spring budget to the treasury on the 6 March.
