A new report has warned prime-minister-in-waiting Andy Burnham that homelessness is set to rise by a quarter, pushing local authorities ‘closer to bankruptcy’.

The report, published by IPPR North and IPPR, found that homelessness rates are on track to increase by 25% by 2030 without intervention, meaning an additional 50,000 people would need temporary accommodation.

The report said the Government’s National Plan to End Homelessness is a step in the right direction, but called on Andy Burnham – who will be officially named as Prime Minister on 20 July – to adopt a housing-led approach that offers people access to secure, permanent homes as quickly as possible.

Researchers warn that local authorities are already facing bankruptcy as billions are spent on temporary accommodation, including hostels and B&Bs. They said this system offers ‘neither stability nor a genuine pathway out of homelessness’.

Recommendations to tackle the homelessness and housing crisis

The IPPR North and IPPR report calls for a programme to bring long-term empty homes back into circulation, partly in order to stem the loss of social housing through the Right to Buy scheme, boost social housing supply, and stop local authorities relying on expensive temporary accommodation.

It also said mayors should use their strategic planning powers and further devolution to set ‘ambitious targets’ for social housing, alongside new duties requiring registered providers to work with councils to house people experiencing homelessness.

The temporary accommodation crisis facing local authorities

By the end of September 2025, the number of households in temporary accommodation reached over 130,000 – the highest figure ever recorded. A further 80,000 households were categorised as eligible for support to prevent or relieve homelessness.

In March this year, the Local Government Association (LGA) published analysis showing that, since 2017/18, councils across England have spent almost £1.5bn more on temporary accommodation than they have been reimbursed by Government. It warned this funding gap could balloon to nearly £4bn by 2029/30 without urgent action.

Comment: why a housing-led approach is needed

Dr Maya Singer Hobbs, author and senior research fellow at IPPR, said: ‘People going through what might be the toughest time of their lives need stability and support, and that starts by having a place to call home.

‘Housing-led approaches are about making sure that people can get the support they need, while also having a permanent roof over their heads and certainty over where they will live.

‘We know these approaches work. We just need Government to help support councils and mayors to put them into practice.’