Landlords leave temporary accommodation market as private rents soar

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An unintended consequence of the Government’s crackdown on the private rented sector has been revealed as councils across London report more landlords withdrawing from the temporary accommodation market for homeless households.

London Councils, which represents the 33 boroughs across the capital, says a lack of rented accommodation within the traditional rented market, and skyrocketing rents, are persuading many landlords to stop offering accommodation for homeless people and instead rent them out to long-term market-rate tenants.

This means councils, who rely in part on this kind of short-term privately-supplied accommodation, are now struggling even harder to house people waiting for long-term affordable accommodation, as they are required to under the law.

Its survey of all 33 boroughs found that 15 reported receiving a Notice to Quit (a legal notice requesting the return of a property) from landlords for 3,531 properties in use as temporary accommodation.

This is a 120% increase on the 1,601 notices received over the same period in 2021-22 and is equivalent to a loss of 6% of London’s total temporary accommodation stock.

Unmanageable

Darren Rodwell (pictured), London Councils’ Executive Member for Regeneration, Housing & Planning, says: “Nobody wants this happening, but boroughs face a complete lack of other options for keeping a roof over an increasing number of homeless families’ heads.

“The homelessness situation in London is becoming unmanageable.

“We need the government to treat this as the emergency it is and work with us in reversing the numbers relying on temporary accommodation.”

London Councils is calling on the Government to raise the Local Housing Allowance, which has been frozen since 2020; support councils to buy accommodation sold by private landlords; boost Homelessness Prevention Grant funding and increase Discretionary Housing Payments.

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