Temporary Accommodation: Costs

(asked on 20th July 2026) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the reasons for any increase in the number of households living in temporary accommodation; and what estimate they have made of the cost of temporary accommodation to local authorities in the current financial year.


Answered by
Baroness Taylor of Stevenage Portrait
Baroness Taylor of Stevenage
Parliamentary Under-Secretary (Housing, Communities and Local Government)
This question was answered on 4th August 2026

The government inherited a homelessness crisis, and recognises that the number of households in temporary accommodation has increased in recent years. On 31 December 2025, 134,210 households were in temporary accommodation, including 85,800 households with children (see published temporary accommodation statistics here.

As set out in the National Plan to End Homelessness, this reflects a combination of factors, including a lack of affordable housing, rising poverty, reduced focus on prevention and wider pressures across public services.

The Department does not produce an estimate of the total cost of temporary accommodation to local authorities for the current financial year. Published Local Government Finance returns provide data on local authority expenditure in previous years. In 2024/25, Local authorities’ net expenditure on temporary accommodation in England was £1.43 billion.

The government is providing £969 million of temporary accommodation funding to local authorities over the period 2026/27 to 2028/29 through the Local Government Finance Settlement, using the new Fair Funding Assessment, which includes a formula reflecting proportional need for temporary accommodation across the country. In addition, the government is investing £950 million through the fourth round of the Local Authority Housing Fund to increase the supply of good-quality temporary accommodation.

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