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LHA cuts leads to increase in B & B demand

A snap survey of London boroughs by ‘Inside Housing’ has revealed that 15 London boroughs have placed 6,322 households in emergency accommodation – (bed and breakfasts or hostels) - in 2011/12, compared with 7,461 during the whole of the previous financial year.

Restrictions to local housing allowance (LHA) for new private rented sector tenants, which came into effect last April and worsening financial conditions for some tenants, have been cited by councils as the reasons for the increase.

These findings come as the government linits to LHA - of between £250 and £400 depending on the property size - begin to be phased in for existing benefit claimants.

Sixteen councils have said they expected the number of people requiring temporary accommodation to increase over the next few years.

Bromley Council has already placed 223 people in emergency accommodation in 2011/12, an increase from 121 in 2010/1 and a council spokesperson said: ‘We have seen a significant increase in the number [of people] approaching housing need and, in particular, facing imminent homelessness against a backdrop of reduced supply of housing.’

A spokesperson for Lewisham Council, which has, so far, placed 432 households in emergency accommodation in 2011/12 compared with 591 last year, said: ‘There is currently pressure in terms of demand from those threatened with homelessness.’

The ‘Inside Housing’ survey also revealed that councils are increasingly placing people outside their own boroughs - and some outside London.

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