The evaluation was undertaken during the last parliament, before the Department of Levelling Up, Housing and Communities (DLUHC) was renamed as the Ministry of Housing, Communities and Local Government following the 2024 UK General Election.
Housing availability is a key factor
Undersupply of suitable housing, especially in the social rented sector, has been a particular driver of homelessness in recent years. The relatively high cost of the housing that is available makes it expensive for Local Authorities (LAs) to place people in temporary accommodation, and for people to find a permanent home.
A lack of housing for social rent limits the routes out of homelessness for households who find themselves in temporary accommodation, as LAs often cannot find PRS properties in the local area that are affordable.
Economic challenges remain
In 2022-23, around 235,000 net additional dwellings were built – a shortfall of 65,000 against the then government’s ambition of delivering 300,000 new homes each year.
The current UK Government has made bold commitments to reform the planning system, reintroduce compulsory local targets, and provide 1.5m new homes. However, economic factors, including inflation, a tight labour market, and materials shortages, continue to pose a major risk to successful delivery.
Budgets under huge pressure
In 2022-23, LAs spent £2.44 billion on delivering homelessness services and, for some, spending on temporary accommodation represents up to half of their total net budget. A number of LAs reported that meeting their duty to provide temporary accommodation could result in them issuing a Section 114 notice, in effect declaring themselves bankrupt.
Efforts frustrated by lack of strategy
Despite DLUHC making significant improvements to the data the UK Government has about the nature and causes of homelessness, the failure to produce an overarching action plan or measurable targets means resources could not be targeted effectively.
Responsibility for key issues relevant to homelessness are spread across several government departments which often have competing priorities. One example describes how a Council was blocked from building enough social housing units by UK Government rules on water demand.
The NAO also raise concerns that competition between the Home Office, who need accommodation for asylum seekers, and LAs, exacerbates the challenges.
