New research suggests that housing benefits tenants in south east London are being forced to find extra cash every month to meet rising private rents and keep a roof over their heads – with Bromley tenants hit hardest. 

Local Housing Allowance is a housing benefit payment made to those eligible for Universal Credit.

It is meant to cover the cheapest 30 per cent of rooms in shared houses on the private rental market.

Figures from youth homelessness charity Centrepoint have uncovered that just one in 13 local authorities across England provide sufficient housing benefit to afford the cheapest quarter of rental properties.

People living in some boroughs in south east London are struggling more than others but the majority are having to find way more than the average national shortfall which is around £90 a month.

Bromley sees housing benefits tenants with the highest shortfall which is more than double the national average at £218.

Greenwich on the other hand has the lowest shortfall figure at £63 – but it does have the cheapest available rentals for a room in a shared house in the area.

Alicia Walker, head of policy, research and campaigns at Centrepoint, said: "This is particularly worrying for those vulnerable young people who rely on Universal Credit to keep a roof over their heads.

"The fact is that if you’re on a low or fixed income then no amount of clever budgeting is going to help you find an additional £100 or more to cover the rent.

Here is a breakdown of the figures across south east London listed from highest to lowest shortfalls.

 

Bromley: The figures show people renting from private landlords who are eligible for housing benefits in Bromley will receive £477 per month from the local housing allowance this year.

The median rent for a room in a shared house in Bromley is £700, while the cheapest 25 per cent of rents cost up to £695.

Housing allowance would cover just 69% of that price, leaving people needing to find an extra £218 per month to put a roof over their heads.

 

Lewisham: The figures show people renting from private landlords who are eligible for housing benefits in Lewisham will receive £477 per month from the local housing allowance this year.

The median rent for a room in a shared house in Lewisham is £750, while the cheapest 25 percent of rents cost up to £650.

Housing allowance would cover just 73 percent of that price, leaving people needing to find an extra £173 per month to put a roof over their heads.

 

Bexley: The figures show people renting from private landlords who are eligible for housing benefits in Bexley will receive £444 per month from the local housing allowance this year.

The median rent for a room in a shared house in Bexley is £650, while the cheapest 25 per cent of rents cost up to £550.

Housing allowance would cover just 81 per cent of that price, leaving people needing to find an extra £106 per month to put a roof over their heads.

 

Greenwich: The figures show people renting from private landlords who are eligible for housing benefits in Greenwich will receive £477 per month from the local housing allowance this year.

The median rent for a room in a shared house in Greenwich is £570, while the cheapest 25 per cent of rents cost up to £540.

Housing allowance would cover just 88% of that price, leaving people needing to find an extra £63 per month to put a roof over their heads.

 

The latest Office for National Statistics figures show prices for all rental properties in London have increased by 4.3 per cent during last year.

The charity said without the Government raising housing benefit rates, people face homelessness amid soaring rental prices.

Centrepoint said people on low incomes renting homes are competing with one another, paying soaring costs and offering lump sums to secure properties.

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Alicia Walker, head of policy, research and campaigns at Centrepoint, added: "The Government has asked low-income renters to defy the gravity of this crisis and somehow find the money to cover the spiralling costs.

"That simply isn’t possible for most young households and, without the Government increasing rates immediately, many of them could face losing their home."

A Department for Work and Pensions spokesperson said: "During the pandemic, we increased Local Housing Allowance significantly and beyond inflation, benefiting over 1 million households by an average of over £600 over the year.

"We’re maintaining that boost, keeping support for private renters above pre-pandemic levels.

"The benefit cap provides a strong work incentive and ensures fairness for hard-working taxpaying households by encouraging people to move into work where possible.

“It balances fairness for taxpayers with providing a vital safety net."