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London Renters at risk of homelessness without government action - claim

Almost 60,000 Londoners in the private rented sector are likely to become homeless over the next six years if the government maintains the freeze on Local Housing Allowance.

That’s the claim of local authority umbrella group London Councils.

The cross-party group 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.


London Councils calculates that 22,000 households equates to 58,740 individuals – including 28,000 children.

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

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

Most of these 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.

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.

It claims London accounts for more than half of England’s total number of homeless households in temporary accommodation.

Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, says: “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. 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.”

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  • Peter  Roberts

    This is not just a London problem.
    This is Country Wide.
    Who caused this problem?
    Simple, it’s all caused by Government, Councils and Shelter.

    It’s not just the freeing of the LHA that’s the problem, it’s all the other constant interference by Government, Councils and Shelter that is forcing PRS LLs to sell up and get out of BTL.
    Already families are living in TENTS outside my and many other Council Offices.
    This will only get worse.
    PRS LLs are not fools.
    We can clearly see that G/C & Shelter are trying their hardest to get us out for some demented reasons.
    They have no homes of their own to put these families in.
    They now have to set up whole new departments in every Council Offices to sort out this self conceived mess they are responsible for.
    Trouble is they don’t have the homes that they definitely need NOW.
    LABOUR say they will build 1.5 million homes if and when they get in.
    This is just Electioneering on their point. We don’t have the Skilled Manpower to achieve this at all.

  • George Dawes

    Excellent post , Peter

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    London tonight last night, I thought Nary Nightingale was going to burst in to tears on the coverage of no fault evictions. When she asked the question why all these people were being evicted for no reason, she was told lack of stock. They should have gone further to say the renters reform bill was having a huge impact, oh and said 2 months notice is too little time to move, yet when a tenant gives a month, they are all tickedy boo. S21 is purely asking you to leave, the further 4 months it takes is long enough to find somewhere to move to and the live examples last week were tenants waiting for the bailiffs to get that magic piece of paper to give to the council who had blatantly told them to stay put. One sided journalism it was, last night.

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    I've started and completed some evictions BECAUSE OF GOVERNMENT ACTION! The Tories with Labour right behind them are causing homelessness.

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    London Renter’s at risk of Homelessness without Government action I agree.
    They need to SCRAP THE RENTERS REFORM BILL that caused Homelessness although too late for Renter’s and the landlord they had is gone. Mr Gove & Shelter are you asleep.
    Labour to build 1.5 million homes if they get in for the people who do nothing and never buy one of their own, just give me one I’am entitled but keep me as well.
    Problem this Government has managed to turn a trillion pound debt into three, so when they take over they’ll need to have a look in their pockets to see what they are going to build them with ? maybe buttons.


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