With the number of houses built in Britain falling to new lows, according to figures released last week, a four-month study by the Bureau of Investigative Journalism, has revealed that £1.88bn has been spent on renting temporary accommodation in 12 of Britain's biggest cities over the past four years.
Campaigners have said welfare changes will exacerbate the problem.
Official figures show that in London alone 7,000 families dependent on benefits stand to lose more than £100 a week under the benefit cap, and many are expected to become homeless as a result.
Leslie Morphy, chief executive of the homelessness charity Crisis, said: "For the sake of cutting just a few pounds a week from their benefits, families and individuals are being forced out of their homes, to be put up in B&Bs or temporary accommodation that costs us all far more.
"A separate investigation by the Bureau of Investigative Journalism has uncovered evidence that London councils are rapidly accelerating the rehousing of homeless households outside their home boroughs. Some 32,643 homeless households have been rehoused out of their borough since 2009.
The "destination" boroughs have said the influx of households has put a significant strain on local services.
Councillors in Enfield in outer London, where more properties and B&B rooms are secured by London authorities than anywhere else, have said the demand from inner London authorities is pushing up private rents and placing untenable pressure on school places.Bureau data shows the amount spent on temporary accommodation across 12 of Britain's biggest cities was up 5.7% to £464m last year. And London councils have budgeted for further significant overall rises this financial year.
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