One in 50 Londoners homeless as ‘housing disaster unfolds in capital’

Approximately one in 50 Londoners are now homeless and living in temporary accommodation, according to new research from London Councils.

Based on its latest survey of boroughs’ homelessness data, the cross-party group estimated the number of homeless residents in temporary accommodation has risen to almost 170,000.

This figure includes 83,500 children – meaning on average at least one child in every London classroom is homeless.

Amid a worsening shortage of affordable housing, there has also been a dramatic 781% increase in homeless families placed in bed and breakfast accommodation beyond the legal six-week limit. This equates to an additional 1,141 London families stuck in unsuitable B&B accommodation in April 2023 compared to the same month last year.

In addition to these figures being released this week, Combined Homelessness and Housing Information Network (CHAIN), a multi-agency database recording information about people sleeping rough, also published new findings that capture the extremity of the homelessness crisis in the capital city. The report discovered 3,272 people slept rough on the streets of London between April and June this year. 

London Councils warned that the crisis is increasingly unmanageable. Boroughs are calling for emergency action from the government to help low-income households meet their housing costs and to address the enormous financial pressures facing local homelessness services.

London Councils said its survey of the boroughs provides a more up-to-date overview of the situation across the capital than the government’s homelessness data, for which there is a six-month lag in publication timeframes. Key findings from the latest survey include:

• London Councils estimates there are now 169,393 homeless Londoners living in temporary accommodation, including 83,473 children
• 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
• Rising homelessness numbers are putting immense strain on boroughs’ finances. London Councils estimate that boroughs are collectively spending £60m each month on temporary accommodation costs. In addition, it is estimated that the net deficit across London boroughs’ homelessness services is on course to reach £244m in 2023-24, an increase of 37% on the estimated deficit in 2022-23

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 (LHA) to pay their rent.

London has the highest homelessness figures in the country, accounting for more than half the overall number of households in England living in temporary accommodation.

Cllr Darren Rodwell, London Councils’ executive member for regeneration, housing and planning, said: ‘This is the latest evidence of the homelessness disaster unfolding in the capital. One in 50 Londoners homeless and living in temporary accommodation is an appalling statistic.

‘We are especially concerned by the skyrocketing numbers of families stuck in B&Bs. Nobody wants this happening and boroughs do everything we can to support homeless families into suitable accommodation. However, more and more often boroughs face a total lack of other options for keeping a roof over these families’ heads.

‘Homelessness pressures across the capital are fast becoming unmanageable. Ministers need to treat this as the emergency it clearly is. Much more action is needed to help low-income households avoid homelessness and to reverse the rising numbers relying on temporary accommodation.’

London Councils urged the government to:

• Raise LHA
• Support councils to buy accommodation sold by private landlords
• Boost Homelessness Prevention Grant funding
• Increase Discretionary Housing Payments
• Bring forward a cross-departmental strategy to reduce homelessness

Image: Fred Moon