New analysis has revealed that London’s boroughs collectively spent £114 million every month on average, or £4m a day, on temporary accommodation.

London’s Homelessness Emergency, a new report published by the cross-party London Councils group, stresses that homelessness in the capital is at record levels and that the current situation is “utterly unsustainable”.

London Councils’ report also highlights:

• More than 183,000 Londoners are estimated to be homeless and living in temporary accommodation arranged by their local borough. This is the highest-ever level of recorded homelessness in the capital – equivalent to at least one in 50 Londoners
• The number of Londoners in temporary accommodation includes almost 90,000 children. London Councils estimates this is equivalent to one out of every 21 children living in the capital and means on average there is at least one homeless child in every London classroom
• The shortage of suitable accommodation means boroughs are increasingly reliant on placing homeless families in B&Bs. Over the past two years there has been a 662% increase in families placed by London boroughs in B&Bs
• Rough sleeping has also grown significantly in the capital. In the ten years since 2014, rough sleeping has spiralled by 58%.

Ahead of the government’s budget on 30 October, London Councils is warning that skyrocketing homelessness numbers and associated costs represent the fastest-growing risk to boroughs’ financial stability – with several boroughs edging closer towards effective bankruptcy.

London boroughs are forecast to overspend on their original homelessness budget plans by £250m this year. Across all services (not just relating to housing and homelessness), London Councils has warned of a £700m funding gap next year.

Cllr Grace Williams, London Councils’ Executive Member for Housing and Regeneration, said: “The homelessness situation in the capital is nothing less than an emergency. London is the epicentre of a national crisis – we are grappling with the most severe housing and homelessness pressures in the country.

“Homelessness is an injustice and has a devastating impact on individuals and families, undermining Londoners’ health, wellbeing, and opportunities. As these figures show, it also brings utterly unsustainable costs to councils. Without urgent action, homelessness pressures will break London boroughs’ budgets.

“We welcome the government’s commitment to tackling homelessness and to building the affordable housing our communities need. Boroughs are relying on the upcoming Budget to bring renewed support for local homelessness services and policies to reduce homelessness as quickly as possible.”