A stark image of a distressed mother holding her baby encapsulates the growing struggle of many families in London as the demand for social housing reaches a 10-year peak.
Borough leaders have highlighted the "spiraling pressures" caused by the increasing number of households on waiting lists.
Government data reveals that as of 2024, 336,366 households are registered on London’s local authority waiting lists for social housing. This is the highest figure in over a decade, surpassing all records since 2013, and marks a 32% rise since 2014. London now accounts for 25% of England’s total number of households awaiting social housing.
The cross-party London Councils group has raised urgent concerns over a homelessness crisis in the capital, citing the severe shortage of affordable homes as a major factor. Their analysis suggests that more than 183,000 Londoners—equivalent to at least one in 50 residents—are currently homeless and reliant on temporary accommodation provided by local authorities.
Borough leaders sound the alarm
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, stressed the severity of the crisis:
“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.”
Financial challenges threatening housing initiatives
Despite the urgent need to improve housing conditions and expand supply, London Councils' analysis indicates that boroughs are grappling with a social housing funding shortfall of £700 million between 2023-24 and 2027-28. This deficit is primarily due to soaring costs and past government-imposed restrictions on social rent levels.
Compounding the issue, boroughs are struggling to accommodate record numbers of homeless Londoners in temporary housing. London Councils estimates that local authorities collectively spend £4 million daily on temporary accommodation, a figure that has surged by 68% in the past year alone.
Urgent calls for national policy action
To tackle the escalating housing and homelessness crisis, London Councils has outlined several urgent national policy priorities:
Addressing the Social Housing Funding Gap: Boroughs are advocating for increased financial support to sustain social housing budgets and enable further investment in new housing projects.
Removing the Local Housing Allowance (LHA) Cap: The cap on LHA for temporary accommodation, frozen at 2011 rates, has failed to reflect the rising cost of housing. London Councils’ data from 24 boroughs reveals a funding gap of over £96 million in 2023-24 between actual accommodation costs and government reimbursement. Boroughs urge the government to lift the cap to better align subsidies with real costs.
Making LHA Rate Increases Permanent: Research indicates that only 5% of private rental listings in London are affordable to households relying on LHA. Boroughs are calling for a permanent increase in LHA rates, with annual adjustments to match market rent trends, ensuring adequate support for low-income tenants.
As the crisis deepens, London boroughs remain steadfast in their efforts to secure more funding, build affordable housing, and provide immediate relief to homeless residents. Without decisive government intervention, however, the capital’s housing challenges are set to escalate further, putting thousands more at risk of homelessness and instability.