Responding to the government’s new national strategy on homelessness, Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:
“London is grappling with the most severe homelessness emergency in the country. We estimate one in 50 Londoners currently live in temporary accommodation, with at least one homeless child in every London classroom.
“Boroughs welcome this new national strategy from the government. We are particularly pleased that the strategy takes a cross-departmental approach, acknowledges the urgent need to get homeless families out of inappropriate temporary accommodation, and brings a much-needed funding boost for homelessness services.
“Reversing the rising tide of homelessness should certainly be a national priority and will not happen overnight. Further action will be needed and we remain extremely concerned about the unsustainable pressures on London boroughs’ temporary accommodation resources. We will continue to highlight the challenges in the capital and work with ministers on tackling this crisis.”
London accounts for more than half of all homeless households in England. London Councils estimates that more than 180,000 Londoners – equivalent to one in 50 residents of the capital – are homeless and living in temporary accommodation. This figure includes one in 21 children in the capital, meaning there is at least one homeless child in every London classroom. More than 330,000 households are on waiting lists for social housing in London.
The cross-party group warns of the devastating impact on individuals, as well as the unsustainable pressures on local services. Boroughs in the capital collectively spend £5.5m every day on homelessness provision.
London Councils is committed to working with the government to tackle homelessness. Boroughs welcomed the government’s decision earlier this year to extend the Local Authority Housing Fund (which provides funding to councils to buy homes for use as temporary accommodation), the uplift to the Homelessness Prevention Grant received by London boroughs, and up to £11.7bn of investment in housebuilding in the capital through the Social and Affordable Homes Programme over the coming decade.
London Councils and the Mayor of London have also launched the Ending Homelessness Accelerator Programme, which has secured funding support from the government.
As policy priorities for making faster progress, London Councils is seeking:
Help meeting London’s spiralling temporary accommodation bill. The amount the government pays councils through the welfare system to subsidise temporary accommodation has been frozen since 2011, even though housing costs have increased hugely in the subsequent 14 years. Insufficient funding means temporary accommodation is more likely to be poor quality and further away from the borough, representing worse value for money, poorer outcomes for families, and less funding to invest in other services that all residents rely on. Increasing the subsidy so it is more in line with today’s housing costs is vital for sustaining boroughs’ finances and enabling them to keep supporting homeless Londoners.
A boost to Local Housing Allowance rates across the board. LHA rates also need to increase more widely to reflect the true cost of private rents. Too many low-income Londoners are struggling to find homes within LHA limits, putting them at risk of homelessness and adding pressure to local services.
Additional capital funding for councils to build or buy homes. Building on positive initiatives like the Local Authority Housing Fund, the government should further increase boroughs’ capital funding to build or acquire properties. This would improve both the quality and value of temporary accommodation, particularly by reducing local authorities’ reliance on a sometimes volatile private rented sector, while also helping to meet long-term housing needs.
Action to sustain social housing finances and enable expanded delivery of homes for social rent. London’s social housing sector faces an ongoing financial crisis, with boroughs being forced to plan cutbacks in their council housing budgets at a time when additional investment is desperately needed. London Councils is calling for more support, especially through the government’s upcoming decision on social rent policy and setting a ‘rent convergence’ rate. To ensure fairness and ensure boroughs have the resources they require to grow social housing provision in the capital, London Councils is asking the government to enable a social rent ‘convergence rate’ of at least £3 per week from April 2026.