London on the brink of bankruptcy with £700m shortfall as 175k go without a home
Councils are facing a £700 million shortfall as they struggle to accommodate homeless Londoners amid the ongoing housing crisis.
London is being pushed to the brink of bankruptcy as homelessness pressures present the “fastest-growing risk” to council finances, local authorities warn.
Councils are facing a £700million shortfall as they struggle to accommodate locals amid the ongoing housing crisis.
Recent government data shows that nearly 18 out of 1,000 households in London live in temporary accommodation. This equates to a staggering 175,000 Londoners, equal to one in 50 residents in the English capital.
The unprecedented amount of residents in temporary accommodation may drive Councils to bankruptcy.
Due to a shortage of properties, councils are resorting to lodging homeless Londoners in hotels, causing expenditure to skyrocket. Costs are as high as £3m a day and £90m per month.
A survey from London Councils, which represents all 31 boroughs, found a 10 percent increase in households living in temporary accommodation between April 2023 and April 2024.
Responding to the crisis, London Councils voiced support for the Renters’ Rights Bill, which was recently introduced to the House of Commons. The Council hopes it will mitigate rising homelessness pressures in the capital.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said: "Three million Londoners live in private rented sector homes and undoubtedly deserve stronger protection.
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"Boroughs support a ban on no-fault evictions. Too often we’ve seen Londoners turfed out of their homes for no good reason and made homeless, turning their lives upside down. With London’s homelessness pressures at record levels, banning these evictions is a crucial step forward.
"Boroughs will work both with the government and with landlords to ensure these reforms are as successful as possible. Part of that means ensuring boroughs are provided with the powers and resources we need to enforce the new rules. We will also work alongside ministers in tackling the other deep-seated issues driving London’s housing pressures and rapidly escalating homelessness crisis – especially the chronic shortage of affordable housing."
London accounts for 56 percent of England’s total number of homeless households. Last year, homelessness hit record highs in England as the cost of living crisis rages on.
