Social housing waiting lists in capital reach decade-high, says London Councils

The number of households on local authority waiting lists for social housing in the capital has hit the highest figure in 10 years, according to an umbrella body of councils in London.

London Councils analysed government data collected between January 1 1997 and December 31 2024, revealing that 336,366 households have been put on hold for social housing. This figure has surpassed the previous record of 344,294 in 2013 and represents a 32% increase since 2014.

The capital is the region with the largest number of households waiting for social housing, accounting for a quarter of England’s national total.

London Councils’ analysis suggested boroughs have been left with a ‘black hole’ of £700m in their social housing finances over the period 2023-24 and 2027-28 due to rising costs and the previous government’s cap on social rent levels.

The group also estimated that boroughs collectively spend £4m every day on temporary accommodation to alleviate homelessness, with this spending increasing 68% over the past year.

Grace Williams, executive member for housing & regeneration at London Councils said: “The growing number of Londoners stuck on waiting lists for social housing is the latest evidence of spiralling pressures in the capital.

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“London is grappling with the most severe housing and homelessness crisis in the country. The capital is becoming increasingly unaffordable and, as these numbers demonstrate, there is a desperate need for more social housing.

“Boroughs are doing everything we can to build the affordable homes our communities are crying out for. However, we are also struggling with enormous resource constraints and immense challenges to housing delivery in London.

“Boroughs are determined to turn the situation around. We are strongly pro-housing growth and as committed as ever to working with the government to turbocharge housebuilding in the capital. We are also working to ensure we have the resources needed to cope with the immediate homelessness pressures we are facing.”

London Councils is calling on the government for more financial support for the social housing sector, including future social rents to be set at levels that sustain boroughs’ social housing budgets and enable more investment in new social homes.

It is also asking for the removal of the January 11 cap on Local Housing Allowance (LHA) payable for temporary accommodation in housing benefit subsidy, which is the amount of money councils can claim from the government for their temporary accommodation costs.

This rate has been frozen in 2011, despite resources becoming more expensive over the past 13 years. London Councils’ data from 24 boroughs shows a subsidy gap of more than £96m in 2023-24 between the cost of providing temporary housing and the amount councils can recover from the government through the scheme.

The collective says that the increase in LHA rates should be a permanent measure, so they are updated yearly in line with market rents, with its research showing only 5% of London’s private rental listings are affordable to households relying on the grant.