Online searches for rental homes where tenants on Local Housing Allowance are accepted have increased 400% across London and the Home Counties in the last three months.
Dssmove, a website which lists LHA properties and which has done the research, says that its own site has 15,000 people currently searching for accommodation in London, followed by Leeds and Manchester, each with 1,000.
Aki Ellahi, who founded the site, said: “The sharp rise in London searches is partly due to the new £500 weekly benefit cap that came into effect on July 15, which is making it impossible for tenants to rent in certain parts of London. Demand is outstripping supply.
“We are receiving hundreds of emails every week from LHA tenants desperately looking for London property. There is a huge shortfall of LHA properties in the area and many more private landlords are needed in London and the south-east to meet demand.”
Currently there are over five million people claiming LHA.