Rise of 120% in London landlords abandoning short-term rental market sector

London is facing a housing crisis, with a significant rise in the number of homeless families being placed in bed and breakfast (B&B) accommodation beyond the legal six-week limit. According to data from London Councils, the number of families in this situation increased by 781% in April 2023, compared to the same month last year, affecting 1,287 families.

Cllr Darren Rodwell, London Councils' executive member for regeneration, housing & planning, made a statement about the situation. He highlighted turbulence in the private rented sector as a key factor behind the capital's skyrocketing rates of homelessness. The combination of fast-rising private rents and a dramatic fall in the availability of rental properties is driving housing pressures in London to new extremes.

As a result, more and more families with children are being placed in unsuitable B&Bs. This is a concerning development, as these accommodations are not designed for long-term stays and often lack the necessary amenities for families.

London Councils' data shows that boroughs' monthly spending on temporary accommodation increased by 16.3% from April 2022-23. Boroughs in London are seriously struggling to secure temporary accommodation for homeless families.

Another troubling trend is the withdrawal of properties from the temporary accommodation sector. Landlords are withdrawing their properties, leaving boroughs running out of alternatives. This has resulted in a loss of 6% of London's total temporary accommodation stock.

The net deficit across London boroughs' homelessness services is estimated to reach £244m in 2023-24, an increase of 37% on the estimated deficit in 2022-23. London Councils estimates that almost 170,000 people in London are now homeless and in temporary accommodation. This represents one in 50 Londoners overall and one in 23 children in the capital.

A new survey conducted by London Councils has highlighted a surge of landlords in London withdrawing from the temporary accommodation sector. This withdrawal is causing a significant strain on the already stretched resources of London's boroughs.

Cllr Rodwell, who was recently appointed as a board member for reconstruction, housing, and urban planning by London Councils, emphasised the urgency of addressing this issue. He called for immediate action to address the root causes of homelessness and to ensure that families in need have access to safe, suitable, and long-term accommodation.