The UK is on the brink of a homelessness crisis, with families forced to live in temporary accommodation costing taxpayers £340 million annually. To tackle this issue head-on, Prime Minister Andy Burnham has announced an urgent national drive to eradicate rough sleeping, backed by significant funding and a commitment to build more council homes.
The Prime Minister's focus on housing is particularly pertinent given recent analysis highlighting a dramatic surge in temporary accommodation expenses. Research conducted in Manchester eight years ago revealed a stark trend: between 2013 and 2018, the city council's expenditure on privately procured temporary housing had escalated from £1.6 million to nearly £10 million – an increase of 478%.
Analyst David Knox, known as 'Appalled Landlord' to Property118 readers, initially highlighted this trend in 2013. His findings showed that increased taxation and regulation on landlords were leading them to raise rents or sell properties, resulting in fewer affordable private rented homes available. This, in turn, pushed more families to present as homeless, forcing councils to procure emergency accommodation at a premium.
Knox's commercial argument highlighted the potential impact of policies such as the restriction of mortgage interest relief on individual landlords. When costs and risks increase, landlords may respond by raising rents, reducing investment, or selling properties – leading to greater competition for fewer homes, disproportionately affecting vulnerable tenants.
What was once a localised issue in Manchester has since become a national emergency. Property118's revisit of Knox's research this year noted that temporary accommodation costs across the UK have reportedly tripled since 2016. As of December 2025, there were 134,210 households living in temporary accommodation, underscoring the scale of the challenge facing Prime Minister Burnham's administration.
The government's new drive to tackle rough sleeping and homelessness will be closely watched by those affected and observers alike. With £340 million pledged for emergency accommodation and an increase in council home construction on the table, the question remains: can these measures stem the tide of a crisis that has left families struggling in temporary housing?