Research by The MJ has revealed a majority of London councils still providing lifetime tenancies by default despite the capital's burgeoning temporary accommodation (TA) costs.
A Freedom of Information (FoI) request by the magazine found that while a range of tenancy agreements were provided to people being housed by London boroughs, the vast majority continue to be offered for life, with no assessment of any change in financial circumstances.
It comes despite legislation being passed by the Coalition Government allowing councils to grant fixed-term tenancies, so they could review any changes in income and ensure scares social and affordable housing went to those most in need.
The 21 London boroughs responding to The MJ's FoI request collectively manage more than 258,000 council homes, with the likes of Islington, Lambeth, Camden, Hackney and Greenwich manage approximately 25,700, 23,300, 22,700, 21,400 and 21,000 respectively.
The percentage of council tenants on lifetime tenancy agreements at these five authorities range from 100% to 87.7%.
None of the 21 authorities responding to the FoI said they had a policy of reassessing any changes in income of households placed in council housing.
This week London Councils, the umbrella organisation for the capital's boroughs, released research showing its members were facing a £740m annual shortfall in funding for TA.
Grace Williams, London Councils' executive member for housing and regeneration, said: ‘Boroughs are doing everything they can to support homeless families, but the system is buckling under the strain.
With the organisation claiming boroughs spend around £5.5m a day on TA it is calling on the Government to raise the housing benefit subsidy, boost Local Housing Allowance (LHA) rates and provide capital funding for councils to build and buy homes.
But critics argue the decision to shun fixed-term tenancies means scarce council homes aren't going to those most in need.
Paul Swaddle, the Conservative opposition leader at Westminster City Council – one of the few authorities to move to fixed-term agreement following the legislation but which has reverted to lifetime tenancies this year – told The MJ: ‘If we think there are not enough social houses how can we possibly just give them away for life?
‘We should be helping those most in need [and] not creating a system where high earners can hold onto council homes for life, regardless of changing circumstances while others wait for years in temporary accommodation.'
Westminster City Council failed to respond to requests for comment but its leader, Adam Hug, has previously said the authority's approach is giving residents ‘the long-term security they deserve'.
Although London Councils does not have a formal position on the use of lifetime versus fixed-term tenancies by boroughs the organisation fears the financial pressure on council housing could force authorities to reduce spending on repairs and maintenance.
Kath Scanlon from the London School of Economics, which carried out the latest research for London Councils, said: ‘Our research shows that the cost of temporary accommodation has become a significant and unsustainable pressure on borough budgets, forcing councils to divert resources away from other essential services.'
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