One child in every classroom in Camden lives in temporary accommodation, figures show.
Camden Council leader Georgia Gould revealed the high number of homeless children in the borough at a meeting on March 4.
She was responding to a call from the opposition Liberal Democrat leader to do more for rough sleepers.
Speaking about a budget amendment to increase funding for rough sleeping and homelessness, Cllr Tom Simon said recent Government figures demonstrated the serious issues nationwide, adding: "Camden is at the forefront of that."
"We have a £4.5m overspend in the temporary accommodation budget driven by the need to place people in hotels to keep them off the streets," he said.
"Camden also saw the largest increase in rough sleeping anywhere in the country in autumn last year."
Announcing a new investment of £6m to support hotels and hostels for rough sleepers in Camden Cllr Gould replied that homelessness was an "enormous and growing issue".
She said: "One child in every classroom is in temporary accommodation and as you said there are big increases in rough sleeping."
But she insisted the council had the resources to cover the extra spending for temporary accommodation in London, which she said had gone up by 70% everywhere.
"The need is just enormous," she added.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here