England is facing a deepening crisis in temporary accommodation, with a record number of families and children living in emergency housing such as hotels and B&Bs.
The situation is placing significant strain on local councils and raising concerns about the quality and safety of these accommodations.
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Rising demand and escalating costs
As of 2025, over 126,000 families are residing in temporary accommodation across England, including more than 164,000 children—a figure that has reached record levels.
This surge is attributed to a severe shortage of social housing and escalating private rents, which have left over 1.3 million families on waiting lists. From 2023 to 2024, the number of households in temporary accommodation increased by 19%, while rough sleeping rose by 20%.
Consequently, council spending on temporary housing reached a record £2.1 billion in 2023–24, with local authorities covering nearly £1 billion of this due to outdated reimbursement caps.
Concerns over accommodation conditions
The quality and oversight of temporary accommodations have come under scrutiny following incidents such as those at Eastfield guesthouse in Peterborough, where management failures led to serious safety issues.
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By GlobalDataIn Newham, families housed in a converted fast-food restaurant, now operating as the Barking Hotel, reported inhabitable conditions, including exposed wiring and lack of basic amenities.
These examples highlight the challenges councils face in providing safe and suitable shelter amid high demand and limited housing supply.
Financial strain on local authorities
The financial burden of temporary accommodation is significant, with some councils, such as Hastings and Crawley, allocating up to or over half their core budgets to this area.
The escalating costs, particularly for “nightly paid” arrangements, are diverting funds from critical services like special education and social care.
Projections by Shelter indicate that if current trends continue, temporary accommodation could rise to 182,000 households, including 205,000 children, with council spending spiking by 71%.
In response to the growing crisis, Westminster Council has approved an additional £139 million to purchase 232 properties for temporary accommodation, aiming to reduce reliance on costly private sector options.
However, housing experts and charities argue that more substantial investment in social housing is necessary to address the root causes of the crisis and provide long-term solutions for affected families.
