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The bed of a homeless person on a street

London’s cost of living risks making the homelessness crisis unmanageable

London boroughs have seen the number of people on the street reach an all-time high, with a growing proportion sleeping rough due to cost-of-living pressures and increasing rents.

The latest figures from CHAIN (Combined Homelessness and Information Network) show that 4612 people were sleeping rough in the capital, between October and December 2024.

This is the second highest figure recorded behind the previous 2024/25 quarter and a 29% increase on the pre-pandemic figure.

The numbers have been rising consistently, aside from the dip between 2020-2022, when the funding to local support services in aid of the government’s ‘Everyone In’ programme, was boosted to assist rough sleepers during the pandemic.

The ‘Homelessness Emergency Report’ produced by London Councils, the collective London local government, highlighted that while relationship breakdowns and individuals leaving the family home “remain a steady driver for rough sleeping, cost-of-living pressures amid a severed shortage of affordable accommodation are making it difficult for individuals on low incomes to sustain their tenancies”.

Rick Henderson, CEO at Homeless Link, a group of organisations working to end homelessness, said: “We are calling for a wholesale review and reset of the funding system and a national homelessness strategy that shifts the focus from crisis management to prevention to ensure that people do not lose their homes in the first place.”

The process of becoming homeless is often assumed to come from a complex series of difficult life events, which may be associated with alcohol and drug addiction or mental health issues.

However, increasingly people can find themselves homeless without these support needs.

This was the case for Shane, 60, a painter and decorator, who found himself homeless when his work dried up at the beginning of the pandemic.

Shane said: “All of a sudden you can’t pay the rent one month, then one month leads to two and then eviction was imminent.

“I was fortunate that I don’t get involved in drink or drugs so I was able to remain relatively clear headed even though it was dark times for me.

“I kind of gave up on the system a little bit, I felt really let down. You work hard all your life, you pay your taxes, I couldn’t find any more work. There wasn’t any work, this was the problem everything was drying up.” 

Shane was one of an increasing number of people to find themselves homeless due to eviction.

The latest quarterly figures from CHAIN show the proportion of people rough sleeping in London without additional support needs is continuing to rise.

Analysis of the data over the last seven years reveals a 13% increase indicating a growing proportion sleeping rough due to cost-of-living pressures.

CHAIN’s most recent data from the 2023/24 annual report analysed the cause of departure for new people sleeping rough from their last settled base.

It revealed that 923 of the 5608, for whom a reason was recorded, were forced into this position, like Shane, due to housing debt and eviction, accounting for 16% of the total.

After his eviction, Shane was able to live in a tent in a field where he was doing voluntary work with horses, but after six years went by living under canvas, he decided he couldn’t face another winter.

He made contact with SPEAR a local homeless charity covering south west London.

Tim Fallon, the CEO of SPEAR said: “The focus of SPEAR is trying to get to people who have a history of rough sleeping, connecting with them, then helping them go on a journey to independence.”

It was a turning point for Shane.

He added: “Before I knew it, I was in the office going through all the formalities trying to get ID sorted out, getting back on paper, starting a paper trail. You know I do exist.”

SPEAR was one of 50 homeless charities to write to the three main candidates prior to the 2024 general election with requests to bolster social housing and prioritisehomelessness prevention, if they were to form the new government.

The new Labour government has since announced their response, with Keir Starmer setting out plans to prevent the rise of homelessness at its cause, with an extra £350million investment to provide affordable housing and take the strain off B&Bs and temporary accommodation. 

Housing Secretary Angela Rayner told broadcasters: “We think the measures we’re taking will unlock thousands more council and social homes as part of that programme.

“We want to help councils who want to build those homes.”

The difficulties in providing temporary accommodation to meet demand has put a strain on local authority finances, with Shelter reporting that its rising use cost councils £2.3bn between April 2023 and March 2024.

Nowhere in England is the problem more pressing than in London.

Info from the London Councils borough finances press releaseshowed, the boroughs collectively spent £1.4bn in the year to March 2024, that’s nearly £4m a day, and a 68% jump between 2022-23 and 2023-24

Data from the Ministry of Housing Communities and Local Government (MHCLG) shows that the number of households in temporary accommodation reached 68,990 as of 2024, a 19% increase over the past six years.

Temporary housing in the capital is unsustainable and with an increasing number of homeless people now being forced into accommodation outside of the capital, Starmer’s focus has turned to prevention.

London Councils reported they will now receive an extra £80million in the Homelessness Prevention Grant.

Boroughs currently spend around 80% of this grant on temporary housing and are reliant on it to help cover those costs.

However, the government has now enforced a minimum of 49% of the grant to be spent on homelessness prevention, in the hope that early intervention will help those at risk to remain in their current accommodation.

London Councils described the increase to the grant as a “step in the right direction” however there are concerns that resources for temporary accommodation will be squeezed given the new 49% restriction.

Governments in the past have made sweeping statements on their plans to tackle the homelessness crisis, but over the past ten years the numbers of people sleeping rough in London have increased by 58%.

The current government’sprevention strategy and planned investment suggest they hope to make headway after previous failings, but it will take time to realise any impact, and outreach charities like SPEAR remain vital to support those who may slip through the net.

Fallon said: “We would love to sort of end SPEAR and say problem solved, homelessness has been ended, but unfortunately the figures show that it’s growing and there is going to be a continuing need.”

Featured image credit: Downtowngal via Wikimedia Commons under CC BY-SA 3.0 licence

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