The number of households waiting for social housing in London has surged to its highest level in over a decade, with 336,366 families on local authority waiting lists in 2024. This marks a 32% increase since 2014 and represents a quarter of England’s national total, underscoring what London Councils have called “spiraling pressures” in the capital.
London Faces Housing and Homelessness Emergency
The shortage of affordable homes is driving a homelessness emergency in London. According to London Councils, over 183,000 residents—more than one in 50 Londoners—are currently homeless and living in temporary accommodation provided by their local borough.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, highlighted the urgency of the situation:
“London is grappling with the most severe housing and homelessness crisis in the country. These numbers demonstrate the desperate need for more social housing. Boroughs are doing everything we can to build affordable homes, but resource constraints and challenges to housing delivery remain immense.”
Financial Strain on Boroughs
London boroughs are facing a £700m funding shortfall for social housing between 2023-24 and 2027-28, due to rising costs and a government-imposed cap on social rent levels. At the same time, temporary accommodation costs are skyrocketing, with boroughs collectively spending £4 million daily to house homeless residents—a 68% increase in just one year.
The financial pressures are further compounded by the outdated 2011 cap on Local Housing Allowance (LHA) subsidies for temporary accommodation, leaving boroughs unable to fully recover costs from the government. Data from London Councils shows a £96m shortfall in 2023-24 alone.
Policy Changes Urged
London Councils have outlined key priorities for national policy action to address the housing crisis:
• Resolve the social housing funding gap: Boroughs are calling for increased financial support, including the ability to set social rents at levels that sustain budgets and enable new investment.
• Lift the 2011 LHA subsidy cap: This would allow boroughs to better recover the costs of temporary accommodation, especially as they rely on high-cost options like B&Bs and hotels.
• Permanently increase LHA rates: Only 5% of private rental listings in London are affordable to households relying on LHA. Boroughs are urging annual LHA updates to align with market rents, ensuring low-income tenants receive adequate support.
London’s Call for Collaboration
Despite resource challenges, London boroughs remain committed to addressing the housing crisis and accelerating housebuilding efforts. “We are strongly pro-housing growth and committed to working with the government to turbocharge housebuilding in the capital,” said Williams.
With homelessness reaching critical levels and boroughs grappling with unsustainable costs, immediate action is needed to prevent the crisis from worsening further.
