As more landlords sell up or choose private tenants, some London councils are facing potential bankruptcy due to the increasing demand for temporary accommodation for homeless people. This coupled with rising accommodation costs sees local authorities struggling to afford enough funding to cover these costs.
According to Sky News, London boroughs overspent on their homelessness budgets by £208m in the year up to April 2024. They state “London has the most severe homelessness crisis in the country, accounting for 57% of England’s total number of homeless households living in temporary accommodation.”
Those living in temporary accommodation in London has risen by 10% to just under 70,000 in the year up to April 2024. The number of families placed in unsuitable accommodation has risen by 25% to over 2,000 families.
London's rental crisis deepens as property availability plummets
The main issue for rising costs along with an increase in homelessness is a chronic shortage of affordable accommodation. The number of rental properties in London has fallen dramatically since the pandemic, with a 41% decrease compared to pre-pandemic levels. This is significantly higher than the national average of 33%. A key factor contributing to this shortage is the growing number of private landlords exiting the rental market, opting instead to sell their properties or rent them directly to tenants.
London Councils call for government help
London Councils has asked the government to make homelessness a major priority by increasing emergency homelessness funding and removing the temporary accommodation government subsidy cap. According to Sky News, “the group also wants the government to allow councils to buy more homes sold by private landlords to use for temporary accommodation.”
The ministry of housing, communities and local government say they are taking action to combat homelessness at its source by increasing social and affordable housebuilding and abolishing Section 21 ‘no fault’ evictions.
How Elliot Leigh is helping with the temporary accommodation crisis
Elliot Leigh acts as a link between landlords who want to provide properties for temporary accommodation and local authorities where temporary accommodation is in high demand.
Through our Guaranteed Rent scheme, we offer landlords full property management, with the benefit of securing their monthly rent throughout the duration of their 2-5 year lease with us. We also partner with local authorities in London and surrounding areas to provide high quality accommodation for families in need.
If you’re a landlord interested in helping offer temporary accommodation without the hassle of property management, get in touch today to find out how we can help you under our Guaranteed Rent scheme.
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