Four-fifths of district councils have warned of shortages of temporary accommodation to meet a rising tide of homelessness fuelled by the cost of living crisis, new research has found.

A survey by the District Councils’ Network (DCN) found 79% of lower-tier authorities cannot meet current demand for homelessness-related accommodation.

One unnamed district said it had been unable to find accommodation for 193 households – indicating the scale of the problem now facing some councils.

Councils claimed the situation has been made worse by the fact that the Local Housing Allowance (LHA), paid to benefit claimants to help them find private rented accommodation, has been frozen since 2020 while inflation has soared to 10% and rents have increased.

Councils have reported they have often been forced to cover the cost of emergency support needed by those priced out of the housing market.

One council said that while residents received £850 monthly from the Government for two-bedroom properties, the average rent was £1,283.

Another, based in northern England, said residents typically faced a £250-£400 rent shortfall from the LHA.

A rising tide of residents’ debt, poverty and domestic abuse has heaped further pressure onto district housing and support services.

The DCN called on ministers to introduce an emergency homelessness prevention fund, allocate further welfare support to districts, unfreeze and uprate the LHA, and reverse discretionary housing payment cuts.

DCN chairman Sam Chapman-Allen said: ‘District councils face a tidal wave of demand for support.’

This article was originally published by The MJ (£).