London Councils is calling for action following a report from the housing charity Shelter showing that one in 58 Londoners is homeless.
The group is pushing for several changes to national policy on housing and homelessness, including an increase in the Local Housing Allowance to improve support for low-income households in the private rented sector.
It wants local authorities to be allowed to reinvest money raised from council house sales for building a replacement home.
London Councils is also demanding that funding should keep pace with inflation and longer-term certainty over government funding grants.
Darren Rodwell, London Councils’ executive member for regeneration, housing and planning, said: ‘London remains the epicentre of the homelessness crisis.
‘The chronic shortage of affordable housing in the capital means too many Londoners find themselves reliant on temporary accommodation arranged by the council.
‘We’re concerned that cost-of-living pressures means this desperate situation will get even worse. Councils across the capital are seeing more and more residents turning to us for help.’
