Under the Homelessness Reduction Act 2017 and the Housing Act 1996, local authorities in England have a statutory duty to prevent and relieve homelessness. Despite these legal frameworks, the staggering rise in the use of temporary accommodation (TA) —now at unprecedented levels—highlights significant gaps in our current strategies and resources.

The statistics are stark.

This landmark report provides a critical analysis of the current state of temporary accommodation and offers insights into how we can better achieve value for money in our efforts to end homelessness for good.

What we found:

1. The use of temporary accommodation (TA) in England is at record levels: in March 2024, more than 117,000 households in England were resident in it.

2. Although most households in TA are in London, significant increases in recent years have occurred in the rest of the country.

3. There has been considerable growth in spending in TA which does not constitute value for money.

4. Homelessness spending pressures now have the potential to destabilise the financial sustainability of some local authorities (LAs).

5. There are substantial gaps in both national and local data about the cost of TA.

6. Unlike for rough sleeping, there is no national strategy in place for TA.

7. LAs can take action to bring their spending on TA under control.

8. The needs of people experiencing homelessness who approach LAs for assistance appears to have become more complex.

9. There is a risk that TA may be unsafe and of poor quality.

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Our Recommendations:

National government:

1. Publish a strategy for tackling all forms of homelessness, with clear objectives for the use of temporary accommodation (TA).

2. Conduct a review of funding streams used for TA to establish the extent to which they support its effective use, and the financial sustainability of local authorities (LAs).

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Ministry of Housing, Communities & Local Government:

1. Establish quality standards for the use of TA.

2. Promote higher standards of data on the cost and use of TA.

3. Assess the complexity of need of people experiencing homelessness placed in TA, and whether this is being fully met. 

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Local authorities:

1. Review the data LAs hold on the cost and use of TA, and assess whether the approach that they are taking to it is commensurate with its scale and risk.

2. Explicitly address and plan for TA needs in local housing supply strategies.

3. Maximise the effectiveness of existing TA provision through targeted interventions to reduce inflow and drive move-on from TA wherever possible