Almost 60,000 Londoners living in the private rented sector
are likely to become homeless over the next six years if the government
maintains the freeze on Local Housing Allowance (LHA), according to new analysis for London Councils.
LHA rates are used to calculate
Housing Benefit for tenants renting from private landlords. In response to the Covid-19 pandemic, the government lifted
LHA rates in April 2020 to cover the 30th percentile of local market rents.
However, since this point LHA rates have once again been frozen – despite a
dramatic rise in rents over the same period.One in seven London private renters are reliant on LHA to
meet their housing costs.
Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, said: "Raising Local Housing Allowance is vital for getting a
grip on the homelessness crisis.
“London is the epicentre of the national homelessness
crisis. The situation is increasingly unmanageable and requires urgent
government action. We cannot continue in this disastrous direction.
“Just as the government boosted LHA during the Covid-19
pandemic to prevent a wave of mass homelessness, we need a similar emergency
response to the situation today. An increase in LHA will help low-income
households pay their rents and avoid homelessness, which can be so devastating
to families and bring massive costs to local services.”