November 10, 2023 10:40 am

Insert Lead Generation
Nikka Sulton

Approximately 60,000 individuals in London’s private rental sector are at risk of homelessness within the next six years if the government persists with the freeze on Local Housing Allowance (LHA), according to London Councils, a local authority umbrella group. This stark prediction is based on independent research conducted by Alma Economics, commissioned by London Councils. The research estimates that an additional 16,500 to 22,000 households in London could face homelessness by the year 2030 if there is no increase in LHA.

The cross-party group emphasizes the potential crisis looming in the city’s housing landscape, stressing the critical role of Local Housing Allowance in preventing a surge in homelessness. The freeze on LHA is identified as a key factor contributing to the alarming projections, urging policymakers to reevaluate and potentially raise LHA to avert a worsening housing crisis in London.

London Councils is making a compelling plea to the government, emphasizing the need to put an end to the freeze on Local Housing Allowance (LHA). This advocacy is a central focus in the group’s submission for the upcoming Autumn Statement, where critical spending plans will be outlined. The urgency of this call is underscored by the fact that London currently bears the weight of more than half of England’s total homeless households residing in temporary accommodations.

Darren Rodwell, the Executive Member for Regeneration, Housing & Planning at London Councils, articulates the significance of raising Local Housing Allowance in addressing the escalating homelessness crisis in the city. He points out that the existing homelessness pressures in London are already staggering and unsustainable. If the current trends persist, an alarming projection emerges, indicating that nearly 60,000 additional London renters could face the risk of homelessness in the years to come. This sobering forecast reinforces the critical need for policy adjustments, particularly in lifting the freeze on LHA, to effectively tackle the pressing issue of homelessness within the city. The outcome of this plea could significantly shape the future trajectory of housing stability for many London residents.

“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.”

In the heart of the national homelessness crisis, London finds itself grappling with an increasingly unmanageable situation that calls for swift and decisive government action. The current trajectory is anything but promising, and urgent measures are imperative to steer away from the disastrous direction we’re headed. As the epicenter of this crisis, London shoulders a disproportionate burden, contributing to over half of England’s homeless households in temporary accommodation. 

The gravity of the situation is underscored by the sobering projection that nearly 60,000 additional London renters could face homelessness in the coming years if the existing trends persist. This alarming forecast highlights the urgent need for a comprehensive and effective response to address the root causes and alleviate the mounting pressures on the city’s housing landscape.


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