A quarter of a million Londoners at risk of homelessness, survey says

Up to a quarter of a million Londoners face losing their homes and becoming homeless as a result of the Government’s changes to Local Housing Allowance (LHA), suggests a survey carried out by London Councils.

The organisation surveyed some 6,300 landlords across the capital in August, asking if they would cut rent, refuse to renew tenancies or evict tenants if they could not keep up with their rent payments because of the changes to the LHA, the form of Housing Benefit paid to those renting in the private sector.

Some 60 per cent of landlords said they would not lower the rents they charged if tenants were unable to meet the full rent due because of the caps imposed on the LHA. Furthermore, almost all of the surveyed landlords said they would evict a tenant or not renew their tenancy if the shortfall in rent rose to over £20 per week. Over a quarter of landlords said they would decrease the number of properties they rented to people on housing benefit if the changes went ahead.

Far from forcing the market to accept lower rents, London Councils say the changes to LHA will lead to a reduction in the availability of rental property for people on low incomes. From the survey, the organisation calculates that some 82,000 households – equating to 250,000 people – are at risk of becoming homeless or living in overcrowded conditions. Others may be forced to move to less costly boroughs, adding extra pressure on services such as schools.

“Judging from the reactions of landlords in our survey, the Government’s proposals will have a huge impact on people living in the capital,” said London Councils’ executive member for housing, Mayor Sir Steve Bullock. “More than 82,000 households, many of them in work but on low incomes, could lose their homes. This could equate to as many as 250,000 Londoners.

“Cracking down on the worst excesses of a small minority of landlords is welcome, however we must make sure that any action that takes place does not have the devastating side-effect of pushing poorer people in the capital out of their homes.”

Responding to the figures, Brent Council’s director of housing and community care, Martin Cheeseman said: “The pressure is now on to ensure this message gets across to ministers. This survey really highlights the devastating impacts these cuts will have on many people living in Brent and across London.

“To put it into perspective, if landlords go ahead as indicated then potentially a quarter of a million people, in London alone, could end up homeless. The findings of this survey make for sobering reading for ministers content on bringing in this reform without considering the consequences it will have on the people and the services involved.”