Homeless figures for Tower Hamlets are down by 25 per cent despite homelessness rising by the same percent across London, according to government figures.

The figures from the Department for Communities and Local Government show 404 people were registered homeless in Tower Hamlets between 2011 to 2012 compared with 537 between 2010 and 2011.

Across the capital 12,720 people were registered as homeless between 2011 to 2012 compared with 10,180 the previous year, amounting to a 25 per cent rise.

A spokeswoman for Tower Hamlets Council said: “We know that a major cause of homelessness in Tower Hamlets was associated with overcrowding. But with the support of the Mayor and development of our new Lettings Policy, we have been able to give priority to overcrowded families.

“Between 2011 to 2012, 60 per cent of social housing lets went to overcrowded families —up from just 40 per cent two years previously.”

But she warned that the government’s new benefit caps will have an impact on the council’s ability to prevent homelessness.

She said: “It will for example limit our ability to help families who want to move to the private rented sector.”