Homelessness in London is escalating at an alarming rate, with a new person forced into homelessness every 7.5 minutes, according to the Single Homeless Project (SHP). In 2021, the rate was one person every 11 minutes, but by 2024, it has worsened. SHP’s chief executive, Liz Rutherfoord, blames the government’s failure to raise the local housing allowance (LHA) to match the rising market rents, which she claims is pushing low-income renters into homelessness.

The charity warns that over 38,000 people could be pushed into homelessness by June next year without a change in the LHA. Raising this allowance would help prevent rent arrears and evictions, and offer those in temporary housing a path into private rental properties.

Temporary accommodation costs London boroughs about £4 million a day, with spending rising by 68% in the past year. About 5% of private rented properties in London are affordable for those on housing benefit due to the LHA cap. Despite a £1bn investment by the government to address homelessness, SHP advocates for immediate action on LHA rates to alleviate the crisis.

Tadhg Mockler, who manages SHP’s emergency accommodation services, stressed that low LHA rates are a key barrier to people accessing stable housing, with rents consistently surpassing the allowance, leaving many stuck in temporary accommodation.