London councils spend 5.5m a day on homelessness crisis as demand soars from desperate families

"The new figures, up from 4.2 million a day in 2023/24, are the latest illustration of the dire state of the capital's housing market, with housebuilding having stagnated and hundreds of thousands of Londoners on council waiting lists. City Hall says London has a mountain to climb to provide the number of homes needed - 87,992 new homes a year from 2026, according to the Government. London Councils, the cross-party organisation that represents the 33 boroughs, says about 5 million of the 5.5 million daily bill is being used to pay for temporary accommodation for people entitled to be housed by councils."

"London boroughs are now spending a staggering 5 million a day on temporary accommodation a stark reflection of the scale of the capital's housing crisis, which continues to worsen. This underlines the importance of using the most up-to-date data in the forthcoming reforms to local government finances and ensuring measures of deprivation properly reflect housing costs and the impact of homelessness."

"One borough, Lambeth, says it is facing the most significant financial challenge in its history, driven by over a decade of central government underfunding, rising costs and unprecedented demand for vital services such as temporary accommodation, adult social care and children's services. It is trying to find 84 million in savings over the six months - on top of 99 million of savings already agreed."

London councils are spending about £5.5 million a day, up from £4.2 million in 2023/24, with roughly £5 million of that used for temporary accommodation for people entitled to be housed by councils. Housebuilding has stagnated and hundreds of thousands of Londoners remain on council waiting lists. City Hall says 87,992 new homes a year will be needed from 2026 to meet demand. The total bill rose 42% year-on-year, nearly three times the national rate, forcing many councils to raise council tax and seek large savings amid long-term underfunding and rising costs.

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