Housing emergency set to leave 206,000 children homeless by end of this Parliament

Housing emergency set to leave 206,000 children homeless by end of this Parliament

Shelter warns urgent investment in social housing needed to prevent homelessness surge and council budget collapse

New analysis by Shelter shows that without urgent government investment in building social housing, homelessness and its staggering costs will skyrocket by the end of this Parliament.

Projections by the charity show that by 2029:

The number of households homeless in damaging temporary accommodation could surge by 44% to 182,000—nearly enough to fill a city the size of Bristol.

Even more shockingly, 206,000 children could be trapped in temporary accommodation, a 26% increase.

Despite these grim forecasts, billions of pounds continue to be wasted on expensive and damaging temporary accommodation, including hostels, B&Bs, and one-room bedsits. With homelessness set to rise sharply, the cost of housing people in temporary accommodation is on track to spiral by 71% to £3.9 billion by 2029—equivalent to £22,000 per household per year, or £1,833 per month.

Shelter’s analysis uses historical trends and government data to estimate how many households and children could be living in temporary accommodation by 2029. It takes into account the ban on section 21 no-fault evictions, using the pandemic eviction ban as a guide, as well as recent funding increases. The projected cost of temporary accommodation is based on rising costs, as more people are placed in expensive options like B&Bs.

For already cash-strapped councils, this escalating financial burden is becoming unsustainable. Local authorities such as Hastings, Crawley, and Dartford are already spending over half their council tax income just to cover the costs of temporary accommodation, leaving little room to fund essential services. If these pressures continue unchecked, more councils will be pushed to the brink of bankruptcy.

Shelter argues this crisis is entirely avoidable and is a direct result of a shortage of genuinely affordable social homes. Social rent is the only truly affordable form of housing, as it is tied to local incomes. However, in the last decade, over 200,000 social homes have been lost through sales and demolition. Meanwhile, 1.3 million households remain stuck on social housing waiting lists, with little hope of a secure home.

Shelter is urging the government to use the June Spending Review to commit to building a new generation of social rent homes—permanently breaking the cycle of homelessness and ensuring every family has a safe and secure place to live.

Mairi MacRae, Director of Policy and Campaigns at Shelter, said: “It is a national shame that so many thousands of children in England are growing up in cramped, insecure temporary accommodation—sharing beds with siblings, eating dinner from trays on their laps, and being moved from one place to the next with no stability. This should never be the reality for any child, but without urgent action, the number of homeless families is set to soar.

"Local councils are buckling under the pressure of the housing emergency, forced to spend billions just to keep people off the streets. It’s nonsensical that we keep sinking tax-payers money into damaging short-term fixes when we could invest in lasting solutions that give families the security and stability of a real home.

"The Spending Review in June is a critical moment for the government to act. If they are serious about ending homelessness, they must commit to building 90,000 new social homes a year for a decade—ensuring that every family has the foundation of a genuinely affordable, stable home."

Anyone who is facing homelessness can get free and expert advice from Shelter by visiting www.shelter.org.uk/get_help.

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