London landlords are refusing to rent to housing benefit recipients because of welfare cuts, the London Assembly has found.

An assembly housing committee report published today showed that landlords are increasingly likely to terminate tenancy agreements prematurely.

There has been a four-fold increase in the number of tenancy terminations since 2010, rising from 300 to over 1,400 per quarter.

The committee said that the majority of landlords, and particularly buy-to-let landlords, are concerned about the benefit cap and other welfare reforms and are cautious about letting to housing benefit claimants as a result.

Housing committee chairman Darren Johnson AM said: “We have heard evidence of a range of problems, including more evictions and rising homelessness, and councils are having more difficulty finding affordable accommodation for their residents.”

One in four London households — approximately 843,000 — receives housing benefit.

The number of housing benefit claims in London has increased in recent years, with growth particularly marked in the private sector — a third of claimants.

“London’s high housing costs and the more recent downward pressure on wages have contributed to a rise in the proportion of London’s households in receipt of housing benefit,” Mr Johnson added.

“Housing benefit is not just a safety net for people who lose their job. It also ensures that pensioners, people with disabilities and those in low-paid jobs can afford to live in London.”

The report recommends that the government regularly review London housing allowance rates and properly take account of the higher housing costs in the capital.