Hammersmith & Fulham LBC has claimed rumours of a mass exodus of council tenants fleeing the capital because of the benefit cap have been greatly exaggerated.

According to figures released by the London borough, just 10 households from a total of 546 in temporary accommodation have had to relocate outside the area because of the £500 a week cap, which was introduced across the country in the summer.

In 344 cases, the council successfully negotiated a lower price, within the new subsidy, with private landlords.

Another 180 have been rehoused in more affordable properties, with 152 cases remaining in Hammersmith and Fulham and 18 resettled in neighbourhood boroughs.

‘The doom-mongers who predicted that the Government's sensible benefits caps, which we fully support, would result in a mass exodus of people out of Hammersmith and Fulham have been proved completely wrong,' said cabinet member for housing,
Cllr Andrew Johnson.

‘Despite having some of the highest property prices in the country, this predicted departure has failed to materialise,' he added.

But Abigail Davies, assistant director of policy and practice at the Chartered Institute of Housing, said while it is ‘good to hear' that Hammersmith & Fulham LBC have been able to negotiate lower rents in many cases, there are still concerns about the medium and long-term effects of the benefit cap.

‘Unless the people affected are given more support in finding work and with affordable childcare, many will struggle to avoid the impact,' she said.

‘Our research in Haringey found that just 10% of people affected by the cap had moved into work since it was introduced, while almost half are receiving money from Haringey LBC's Discretionary Housing Payments budget to help them cope – something we fear will be unsustainable in the long-term.'