Oxford City Council has approved a £32m investment to expand its temporary accommodation provision and reduce reliance on costly hotel placements.
The funding will deliver around 150 additional homes, including new property acquisitions and the refurbishment of existing council-owned housing.
By 2028/29, the council expects to manage or own around 560 units of temporary accommodation, enough to meet projected demand.
The move aims to curb spending on nightly-paid accommodation, particularly bed and breakfasts, which had been forecast to cost up to £2.4m annually.
Demand for temporary accommodation has risen sharply, with the number of households more than doubling from 116 in March 2023 to 309 in November 2025.
The increase reflects wider national pressures, including rising rents, the cost-of-living crisis and a shortage of affordable housing, according to the council.
Cllr Linda Smith, cabinet member for Housing and Communities, said: ‘We are seeing unprecedented pressure on our homelessness services, and more people than ever are turning to us for help. It is crucial that the council takes steps now to increase the supply of temporary accommodation, to ensure that demand does not continue to outpace our ability to help those in need.’
