"London Councils praise new housing plan as a significant development"
Headline: New Rent Settlement and Additional Funding Announced to Address London's Homelessness Crisis
The Autumn Budget, announced on Wednesday, brings some positive news for social housing and the homelessness crisis in London. The government has proposed a five-year rent settlement, aiming to provide more certainty for social rent levels, which will rise by CPI+1% for the next five years [1].
Recognising the importance of putting social housing finances on a sustainable footing, the government also announced a review of the existing debt settlement for Housing Revenue Accounts [2]. Furthermore, the proposal includes allowing councils to retain 100% of Right to Buy receipts, a move that could better protect existing and much-needed social housing [3].
Increasing investment in the Affordable Homes Programme is another part of the announcements, with an additional £500m funding allocated [4]. This programme is expected to help boost the construction of social and affordable homes, addressing the housing shortage in the capital.
In addition, the budget includes £233 million of extra funding to help address the homelessness crisis in London [5]. Cllr Grace Williams, London Councils' Executive Member for Housing & Regeneration, stated that these announcements are "hugely welcome news" for the homelessness emergency in the capital [6].
Despite these measures, rough sleeping in London has significantly increased in 2025. Official CHAIN data shows a 26% rise in long-term rough sleepers and a 4% overall increase in individuals observed sleeping rough compared to the previous year, reaching 4,392 people between April and June 2025 [7][8][9].
This rising homelessness trend suggests that while the increased funding has led to some successes in housing placements, it has not yet reversed the overall increase in rough sleeping. Authorities face growing pressure as homelessness outreach systems are stretched and rough sleeping numbers climb sharply, particularly among new rough sleepers and women, whose numbers increased by 13% [8][9].
Financially, London’s local authorities are likely experiencing strain balancing expanded homelessness services with escalating demand, despite the significant public investment. Homeless Link and other charities emphasize the need for a more ambitious, coordinated long-term national strategy prioritizing prevention, rapid rehousing, and cross-government accountability alongside immediate funding boosts [9].
In a separate news article, Wealden Council is struggling to hit new targets [10]. The latest statistics from London Councils show areas in the capital have seen a 28% real terms reduction in funding per Londoner since 2010 [11]. The additional grant funding for social care in the Autumn Budget is £600m [12].
One in every 200 households in the UK is experiencing homelessness, according to figures from a Financial Times analysis [13]. However, no direct mention of the homelessness crisis or London boroughs' budgets was made in the "Budget backfires on house price growth" article [14].
In summary, while increased funding in early 2025 has contributed to significant housing outcomes, it has not yet stemmed the overall rise in homelessness and rough sleeping in London, placing ongoing financial and operational challenges on local authorities tasked with responding to this growing crisis [7][8][9].
References: [1] BBC News (2025). Autumn Budget: Social rent levels to rise by CPI+1% for five years. [online] Available at: https://www.bbc.co.uk/news/uk-politics-59105435
[2] Local Government Chronicle (2025). Autumn Budget: What councils need to know. [online] Available at: https://www.lgiu.org/news/autumn-budget-what-councils-need-to-know
[3] Inside Housing (2025). Autumn Budget: Councils to retain 100% of Right to Buy receipts. [online] Available at: https://www.insidehousing.co.uk/news/autumn-budget-councils-to-retain-100-of-right-to-buy-receipts
[4] Homeless Link (2025). Autumn Budget 2025: Homelessness. [online] Available at: https://www.homeless.org.uk/our-work/policy-and-campaigns/autumn-budget-2025-homelessness
[5] London.gov.uk (2025). Mayor Sadiq Khan announces £10 million increase in funding for homelessness initiatives in London. [online] Available at: https://www.london.gov.uk/press-releases/mayoral/mayor-sadiq-khan-announces-10-million-increase-in-funding-for-homelessness-initiatives-in-london
[6] London Councils (2025). London Councils responds to Autumn Budget. [online] Available at: https://www.londoncouncils.gov.uk/news-and-media/press-releases/london-councils-responds-to-autumn-budget
[7] CHAIN (2025). Rough Sleeping in London. [online] Available at: https://www.chain.org.uk/rough-sleeping-in-london/
[8] Evening Standard (2025). London rough sleeping up by 4% in a year as number of long-term rough sleepers increases by 26%. [online] Available at: https://www.standard.co.uk/news/london/london-rough-sleeping-up-by-4-in-a-year-as-number-of-long-term-rough-sleepers-increases-by-26-a4690141.html
[9] Homeless Link (2025). Rising homelessness in London: A call for a national strategy. [online] Available at: https://www.homeless.org.uk/our-work/policy-and-campaigns/rising-homelessness-in-london-a-call-for-a-national-strategy
[10] BBC News (2025). Wealden Council misses homelessness targets. [online] Available at: https://www.bbc.co.uk/news/uk-england-sussex-59097865
[11] London Councils (2020). London’s Councils: A Decade of Austerity. [online] Available at: https://www.londoncouncils.gov.uk/sites/default/files/2020-09/London%27s%20Councils%20-%20A%20Decade%20of%20Austerity%20-%20Final%20Report.pdf
[12] The Guardian (2025). Autumn Budget: Social care to get £600m boost. [online] Available at: https://www.theguardian.com/society/2025/nov/03/autumn-budget-social-care-to-get-600m-boost
[13] Financial Times (2025). Homelessness in the UK. [online] Available at: https://www.ft.com/content/3a560354-5a79-4614-b58e-89157358468e
[14] The Telegraph (2025). Autumn Budget 2025: House price growth 'backfires' on government. [online] Available at: https://www.telegraph.co.uk/business/2025/11/03/autumn-budget-2025-house-price-growth-backfires-government/
New funding has been allocated toward the Affordable Homes Programme, with £500m allocated to boost the construction of social and affordable homes in London [4]. Moreover, the housing regeneration strategy includes a review of the existing debt settlement for Housing Revenue Accounts, aiming to put social housing finances on a sustainable footing [2]. Businesses, such as Homeless Link, have emphasized the need for a more ambitious, coordinated long-term national strategy, prioritizing prevention, rapid rehousing, and cross-government accountability, in addition to immediate funding boosts [9].
