THE council has started moving tenants to Luton due to a shortage of housing in the borough, which is expected to get worse.

Waltham Forest Council is one of 13 London authorities which is rehousing people outside London.

The authority says it is has made the move in preparation for the Government's cap on housing benefit, which is expected to be introduced in January 2012.

There are concerns that families will be forced to move out of central London due to a shortage of homes within the new benefit limit.

This is expected to put further pressure on housing in cheaper areas such as Waltham Forest.

A council spokesman said: “One of Waltham Forest’s tendered agents also does business in Luton and brought 13 two-bed properties there to our attention, all of which were quickly let.”

He added that this is the first time in five years the council has had to rehouse residents outside London as a result of the severe shortage of suitable properties in the borough.

There are currently 16,643 people on the council's housing list - 1,000 more than this time last year.

Cllr Marie Pye, cabinet member for housing and development, said: “We have a chronic shortage of social housing and, with the recession and the uncertainty over the coalition government’s plans to cap housing benefits, we can only expect the situation to become more severe.

“Indeed, we are actually anticipating an influx of some 750 additional families to the borough as those currently living in social housing are pushed out of London’s wealthier areas.

“We will, of course, continue to work hard to improve Waltham Forest’s housing stock and do everything we can for the many families either on the waiting list or living in overcrowded accommodation, even if this might mean occasionally housing them outside the borough.”