London’s social housing waiting lists reach 10-year high (original) (raw)

The growing number of households on waiting lists for social housing in London is the latest evidence of “spiralling pressures”, according to boroughs.

Data recently released by the government shows 336,366 households on London local authority waiting lists for social housing in 2024. This is the highest figure for more than a decade (the previous record was 344,294 in 2013) and represents a 32% increase since 2014.

London is the region with the largest number of households waiting for social housing, accounting for 25% of England’s national total.

The cross-party London Councils group has warned that the capital faces a homelessness emergency, with the acute shortage of affordable homes a key factor behind this. London Councils’ analysis suggests more than 183,000 Londoners – equivalent to at least one in 50 residents of the capital – are currently homeless and living in temporary accommodation arranged by their local borough.

Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:

“The growing number of Londoners stuck on waiting lists for social housing is the latest evidence of spiralling pressures in the capital.

“London is grappling with the most severe housing and homelessness crisis in the country. The capital is becoming increasingly unaffordable and, as these numbers demonstrate, there is a desperate need for more social housing.

“Boroughs are doing everything we can to build the affordable homes our communities are crying out for. However, we are also struggling with enormous resource constraints and immense challenges to housing delivery in London.

“Boroughs are determined to turn the situation around. We are strongly pro-housing growth and as committed as ever to working with the government to turbocharge housebuilding in the capital. We are also working to ensure we have the resources needed to cope with the immediate homelessness pressures we are facing.”

Despite the desperate need to improve housing conditions and build new homes in the capital, London Councils’ analysis suggests boroughs have been left with a black hole in their social housing finances of £700m over the period 2023-24 and 2027-28. This effective reduction in resources is due to the combination of fast-rising costs and the previous government’s cap on social rent levels.

At the same time, boroughs are struggling with record numbers of homeless Londoners requiring temporary accommodation. London Councils estimates that boroughs collectively spend £4m every day on temporary accommodation – and this spending has increased 68% over the past year.

London Councils’ priorities for national policy action on housing and homelessness include:

Addressing the crisis in social housing finances. Boroughs are urging more financial support for the social housing sector, including future social rents to be set at levels that sustain boroughs’ social housing budgets and enable more investment in new social homes.

Remove the January 2011 cap on Local Housing Allowance payable for temporary accommodation in Housing Benefit subsidy. This is the amount of money local authorities can claim from the government for their temporary accommodation costs.

Currently the subsidy has been frozen at 2011 rates – even though temporary accommodation has become significantly more expensive over the past 13 years. London Councils’ data from 24 boroughs shows a gap of more than £96m in 2023-24 between the cost of providing temporary accommodation and what councils can recover from government through the housing benefit subsidy for temporary accommodation.

The ‘subsidy gap’ is a priority concern for London boroughs, especially as they increasingly rely on relatively high-cost temporary accommodation options in B&Bs and commercial hotels. Lifting the cap would better reimburse boroughs for their temporary accommodation costs.

Make the increase in Local Housing Allowance rates a permanent measure. Research published by London Councils shows only 5% of London’s private rental listings in the capital are affordable to households relying on Local Housing Allowance.

Boroughs are calling for the increase in LHA rates to become a permanent measure, with LHA rates updated annually to track market rents and help ensure adequate support for low-income tenants in the private rented sector.