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UK sees record rise in households in temporary accommodation, think tank says
Published by Global Banking & Finance Review®
Posted on July 10, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on July 10, 2025
2 min readLast updated: January 23, 2026
The UK faces a record rise in temporary accommodation due to high rents and a lack of affordable housing. A think tank warns the situation could worsen without government intervention.
LONDON (Reuters) -The number of families living in temporary accommodation in England has more than doubled since 2010 due to a lack of affordable housing and high rents and the problem could worsen without government action, a think tank warned on Friday.
The number of households living in temporary accommodation in England jumped from 50,000 in 2010 to 128,000 now, with 72,000 families in London alone, the Resolution Foundation said.
Single-parent families made up 35% of families living in temporary accommodation despite representing 16% of UK households, it said in a report.
Cameron Aref-Adib, an economist at the think tank, said a shortfall between the cost of private rents and housing welfare was a factor pushing people into temporary housing.
Private rents in Britain have increased by 54% while housing benefit rates went up 36%, according to the report.
Also just 8% of affordable homes in London were built for social rents, which are considered to be more affordable for low-income households.
Aref-Adib said the government should build more homes with the report showing that planning approvals for housing developments in the last three months of 2024 fell to its lowest level since 1979 at 7,356.
Britain's Labour government, which came to power a year ago, wants 1.5 million homes built by 2029. It has announced 39 billion pounds ($52.81 billion) of investment in affordable homes, and the Resolution Foundation welcomed the allocation of 60% of the money to social rent.
($1 = 0.7385 pounds)
(Reporting by Suban Abdulla; editing by William Schomberg)
The number of households living in temporary accommodation in England has increased from 50,000 in 2010 to 128,000 now.
Single-parent families make up 35% of those living in temporary accommodation, despite only representing 16% of UK households.
The increase is attributed to a shortfall between the cost of private rents and housing welfare, as well as a lack of affordable housing.
The Labour government aims to build 1.5 million homes by 2029 and has announced a £39 billion investment in affordable homes.
Private rents in Britain have increased by 54%, while housing benefit rates have only gone up by 36%.
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