Lack of affordable housing could push London’s population in temporary accommodation to record levels by the end of the year.
Figures expected from the Department of the Environment, Transport and the Regions, will show a reduction in the total number of homeless in the capital.

But the number of households in temporary accommodation could soon break the 1991/92 high of over 40,000, London housing bodies are predicting.

Figures for the quarter ending in March show the total number of people in temporary accommodation at around 37,000 and climbing.

But latest figures, due out this week, are expected to show a further increase in numbers temporary housed.

Meanwhile preliminary findings from research by the London Housing Unit note a significant reduction in the supply of affordable housing in the capital.

Since 1996/97 supply has dropped by around 25 per cent -equivalent to a total of 12,000 lettings, according to the research.

Head of the unit Peter O’Kane said early indications showed a 10 per cent decline in supply of affordable housing in London for 1999/2000. This meant a cumulative fall of 25 per cent since 1996/7.

He said: "If increases [in households in temporary accommodation] occur at the same rate in this quarter the total will be around 37,500 and if it continues like that we will be reaching 40,000 mark pretty soon."

He added: "The decline in supply is a key feature which is driving the increases in the number of people in temporary accommodation."

The Unit has identified a six year dip in the number of nominations to RSLs and a drop in the number of council relets.

The Association of London Government also anticipates the figures will show temporary homelessness remains at a high level.

The reduction in London’s total homeless figure is in part due to the exclusion of figures relating to the number of asylum seekers in the capital.

DETR could not confirm or deny the figures for people living in temporary accommodation in London.