New analysis from Single Homeless Project today reveals that one Londoner is forced into homelessness every 11 minutes, more single adults are being driven into urgent housing situations and rough sleeping continues to rise significantly.
The charity is calling for action on two major economic drivers of homelessness in our capital city – a disproportionately low benefit cap in comparison to London’s sky-high rents and an incentives scheme that wastes public money and creates a climate for higher eviction rates. Due to the benefit cap, only four of London’s thirteen areas would see residents able to use their full Universal Credit allowance for bills and living expenses. Londoners in the remaining areas would have to use their Universal Credit to pay rent and in four of the areas, would be left with just £3.72 to live on.
By combining Statutory Homeless data from local authorities and the London-only CHAIN figures on rough sleeping levels for the first time, the statistics show a more accurate picture of homelessness in the city.
One Londoner is forced into homelessness every 11 minutes (up 16% from three years ago).
Single adults with no dependents are the group most impacted by urgent homelessness, making up nearly half of people forced into homelessness. One single person is forced into homelessness every 20 minutes (up 36% from three years ago).
Someone is made street homeless in London every 90 mins (up 44% from three years ago).
Low benefit levels in comparison to private sector rentals are contributing to the high number of Londoners in rent arrears. These unfair benefit levels, coupled with a huge demand for private rented accommodation due to a lack of affordable homes, mean that councils and charities have to resort to paying landlords millions of pounds in financial incentives just to accept people experiencing homelessness as paying tenants. This is wasting public money and creating a climate for higher eviction rates where landlords are effectively motivated to either issue short term tenancies or end longer term ones early in order to claim the next cash incentive for a subsequent tenant.
Liz Rutherfoord, Chief Executive at Single Homeless Project said:
“Londoners are being set up to fail by unrealistic housing benefit levels and a ludicrous incentive scheme that creates a climate for high levels of evictions from private rented accommodation. Single adults are being left to struggle all on their own with no statutory rights to be housed and insufficient benefits to meet the cost of living in London. We need to build the right environment for everyone in our city to thrive, not waste public money on costly, short-term solutions that benefit only a few.
“We know from our services across London that when you focus efforts on long-term support, everyone wins. Our tried and tested tenancy sustainment model means that landlords gain the financial stability that long-term tenants bring, renters benefit from the support and security they need, and councils can be reassured that public money is spent on a long-term solution that reduces homelessness. Homelessness doesn’t define you. It is an experience, not a forever and it can be ended with the right solutions.”
Single Homeless Project calls on the UK Government to:
Review of the benefit cap so that it is proportional to London’s rent levels.
Ban the practice of paying incentives to private sector landlords for accepting tenants experiencing homelessness.
Reinvest the public money spent on incentives in tenancy sustainment programmes, including debt and money management advice, mental health support and mediation between landlord and tenant when needed.
The table below shows the impact of the unfair benefit cap on Londoners compared to UK’s next two biggest cities. Due to the benefit cap, only four of London’s thirteen areas would see residents able to use their full Universal Credit allowance for bills and living expenses. Londoners in the remaining areas would have to use their Universal Credit to pay rent and in four of the areas, would be left with just £3.72 to live on.
