A shortage of private accommodation in London could mean homeless people are moved as far away as Hull, where rents are cheaper, housing charities are warning. They fear there will be an exodus from the capital of people at the bottom of the housing ladder as the coalition's Localism Act, which comes into force this spring, empowers local authorities to place homeless people in private rented accommodation. At least one London council, Croydon, is seeking to rent private accommodation in Hull and several other Yorkshire towns. It has also rented property in St Leonards on Sea on the Sussex coast. Other councils are predicted to follow suit, according to housing experts. Until the act comes into force, homeless people can stay in temporary housing until social housing becomes available. However, this choice is being removed at a critical time. The local housing allowance, money paid by local authorities to those on housing benefit in the private rented sector, has been cut. In addition, the mortgage drought has meant many people trying to get on to the housing ladder have been forced into the rental sector, inflating rents. The result, according to housing experts, is that the private sector is becoming increasingly unaffordable for local authorities, resulting in a ripple effect as homeless people and those on benefits are rehoused in areas where rents are cheaper. Shelter, the housing charity, said new regulations, to be published soon, would set out councils' obligations to homeless people placed in private rented accommodation. Shelter