Homeless hostel St Mungo’s is to be used in City Hall’s campaign to wipe out rough sleeping in the capital.

Sadiq Khan has earmarked the Mare Street hub for the first permanent base of the No Second Night Out (NSNO) project, which has been running at three temporary sites since 2011.

The plans would see the basement converted to provide 25 “sit-up beds” for rough sleepers, with Hackney getting priority use of it.

Other homeless people from across London will be referred by outreach teams and then passed on to the council responsible for them.

The Greater London Authority (GLA) created NSNO to stop homeless people ending up on the street by offering them shelter for three nights, as well as help and support. Mayor of Hackney Philip Glanville said it formed part of the town hall’s ongoing commitment to tackling all forms of homelessness in the borough.

He said: “The hub will make a real difference in a time where there is increasing demand on homelessness services and a challenging financial environment for both council and the voluntary sector.”

Hackney has an average of six new rough sleepers every month and the number of recorded people on the streets at the end of June was 35. The town hall believes that between the NSNO hostel and the Greenhouse Single Homeless Hub, no one will have to spend a second night on the street.

Possible anti-social behaviour issues will be tackled with a £50,000 grant to the community safety team, while the council could move the bus stop outside, close off the alcove in the Iceland car park and improve lighting and CCTV.