The report, by the charity Homeless Link, surveyed council housing services about young homeless people in their local areas.
It found that 65 per cent of councils are particularly worried about the fact that the “shared accommodation rate” for under-25s has been extended to include under-35s.
The extension, which came into force almost a year ago, means that housing benefit for anyone under 35 is restricted to the average local rent for shared accommodation.
Councils told Homeless Link that the measure has increased competition for rooms in shared accommodation in the private rental sector, leaving many younger people unable to find a home.
Half of the 101 councils surveyed also said caps to housing allowances for young people were restricting access to accommodation. Allowances are now capped to the cheapest 30 per cent of local rents, but was previously paid at up to 50 per cent.
The survey meanwhile found that just one in three councils have developed schemes with landlords to respond to the government’s welfare reforms.
Homeless Link is urging local authorities to provide suitable emergency accommodation for young people, develop clear strategies for tackling youth homelessness and fund prevention services, such as family mediation and youth advice centres.
Homeless Link also surveyed 117 charities that support homeless young people as part of the report, half of which said they are experiencing an increase in demand this year or have been forced to turn away young people because their services were over-stretched.
The charities warned that cuts to local youth services are fuelling an increase in demand for advice and information, with 54 per cent saying that funding cuts had led to the closure of youth services in their area.
Just under half added that “ineffective relationships with children’s services” were making it harder to support young people.
Homeless Link chief executive Rick Henderson said: “These findings highlight the impact that capping welfare for young people is already having on their ability to find housing.
“Homelessness among the under-25s is increasing in many areas while unemployment, rising rents and cuts to homelessness and youth services are leaving many with nowhere to turn.”
Debbie Jones, president of the Association of Directors of Children’s Services, admitted that the welfare reforms are a “significant concern” to councils.
“Since the Southwark Judgment, local authorities have been responsible for providing accommodation for homeless 16- and 17-year-olds,” she said.
“In the last year we have seen a rise in the numbers of older teenagers becoming looked-after and therefore accommodated as a result of this judgment. Local authorities are doing so in the face of unprecedented budgetary pressure.
“Housing professionals have, like all other professionals working with children and families, an important role to play in sharing intelligence, concerns and highlighting at an early stage any young people at risk of becoming homeless, for example as a result of a difficult home life with their family.”
David Simmonds, chair of the Local Government Association’s Children and Young People Board, added: “Councils take their responsibilities towards young people extremely seriously and are well aware of their obligations towards this group.
“A young person facing the prospect of homelessness is a grave concern for all involved. Councils are keen to play their part and want to see more joined-up working with local landlords and housing charities.
“It is also in everyone’s interest to remove unnecessary barriers which prevent the homes we desperately need being built. Councils could go further and faster to support the development of badly needed new homes, while investing in existing ones, if government removed some of the obstacles that stand in their way by giving councils greater financial flexibility.”
