William Eichler 18 September 2025

Councils spend record £2.8bn on temporary housing

Councils spend record £2.8bn on temporary housing image
A temporary accommodation location in the Southeast of England that receives nominations from the local council. © Peter_Fleming / Shutterstock.com.

The Government has released new figures showing that local councils in England spent £2.8bn on temporary accommodation for homeless households in 2024/25, a 25% increase compared with the previous year.

Spending on temporary accommodation has more than doubled over the past five years, rising 118%.

One-third of the total – £844m – was spent on emergency B&Bs and hostels, often the least suitable option for families who must share kitchens and bathrooms with strangers. A further 40%, over £1bn, went on nightly paid self-contained accommodation, marking a 79% increase in just one year. These privately managed units are frequently expensive and cramped.

Shelter is urging the Government to move beyond temporary fixes and tackle the housing crisis by delivering more social rent homes. It recommends scaling up the Social and Affordable Homes Programme to 90,000 social rent homes per year for the next decade.

John Glenton, chief care and support officer at Riverside, one of the largest providers of accommodation for people affected by homelessness in England, said: ‘In a short time, this government should be commended for cutting the number of families living in B&Bs by almost a third (30%).

‘However, if it is going to reduce homelessness, we need to see a significant and sustained increase in new social housing and dedicated ring-fenced funding spent on homelessness services and supported housing.’

SIGN UP
For your free daily news bulletin
Highways jobs

Virtual School Advisory Teacher

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
Virtual School Advisory Teacher
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Business Architect

Essex County Council
£60049 - £70645 per annum + Hybrid working, Flexible working
Please note this vacancy is available as a fixed term contract or secondment opportunity for up to 12 months.Join a Council Shaping the Future of Pub England, Essex, Chelmsford
Recuriter: Essex County Council

Electrical Manager

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take on a pivotal leadership role in managing electrical systems across Derbyshire’s highway network? Derbyshire
Recuriter: Derbyshire County Council

Senior Service Product Manager

North Yorkshire Council
£47,181 - £51,356 per annum
Do you have experience in product management are looking to build your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner