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London boroughs fear ‘summer wave of homelessness’
Councils in London fear there will soon be a spike in homelessness in the capital due to the ongoing economic impact of the pandemic combined with the ending of government protections to prevent people losing their homes.
London Councils, the cross-party group that represents local authorities in London, has warned of “a fast-approaching summer wave of homelessness in the capital”.
It said boroughs fear a spike in homelessness due to the “triple whammy” of high unemployment and rent arrears, the ending of the eviction ban and uncertainty over homelessness funding.
Recent research from the London School of Economics (LSE) found that 400,000 Londoners are in significant rent arrears as a result of the coronavirus pandemic. And latest government data found that London has the highest unemployment rate in the UK at 7.2%, compared with the UK average of 4.9%.
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Meanwhile, analysis commissioned by London Councils found this situation could worsen after the furlough scheme ends in September, with potentially one in 10 Londoners (9.4%) unemployed by the end of the year.
At the same time, the government’s ban on bailiff evictions is due to end at the end of this month, which boroughs have warned will lead to a spike in renters facing eviction and turning to their local authority for help to avoid becoming homeless.
London Councils said there is also “little clarity” over what homelessness funding will be available to local authorities after June.
It said London boroughs’ spending on homelessness rose by £107m last year and that councils are currently providing emergency accommodation for 2,659 rough sleepers.
London Councils is calling on the government to provide more long-term funding certainty while also ending the five-week wait for Universal Credit payments to begin and making sure Local Housing Allowance continues to match the cost of renting in London.
Darren Rodwell, deputy chair and executive member for housing and planning at London Councils, said: “Even though the COVID-19 situation is gradually improving, there’s a very real risk of London’s homelessness crisis getting even worse.
“In the coming months we can expect a triple whammy of continuing job losses in the capital, the imminent lifting of the eviction ban, and uncertainty over future funding levels for local homelessness services.
“Boroughs are doing everything we can to tackle homelessness in the capital, but ultimately we need the government to rethink its welfare policies and to boost long-term funding for local services if we’re to reverse these disastrous trends.”
A government spokesperson said: “An unprecedented £352bn support package is helping those most in need during the pandemic. It has prevented a widespread build-up of rent arrears by ensuring private renters can continue paying their rent. Renters will continue to be supported as emergency measures are lifted – with longer notice periods in place until the end of September.
“We’re also providing over £750m this year alone to tackle homelessness and rough sleeping, including £310m for councils to manage homelessness pressures and support those who are at risk of homelessness.”
