Demand for temporary accommodation ‘squeezing N Ireland homelessness services’

The rising demand for temporary accommodation will potentially put unsustainable pressure on homelessness services in Northern Ireland, the Auditor General has found.

The demand has gone up by 176%, according to a report, with 4,700 households in temporary accommodation in 2023/24, up from 1,700 in 2017.

The report by Auditor General Dorinnia Carville found that dealing with the “unprecedented demand” cost the Housing Executive almost £39 million in 2023-24.

The report found that the cost of providing temporary accommodation represented more than half of all the Housing Executive’s spending on homelessness services in 2023-24.

While the majority of this was on self-contained, single let accommodation, the Housing Executive spent more than £12 million on hotels and B&Bs last year, compared with around £7.5 million in 2022-23 and £0.9 million in 2018-19.

The report also found that this expenditure is disproportionate to the number of households placed in such accommodation.

While only around 10% of households are placed in hotels and B&Bs, they account for more than 30% of annual spend on temporary accommodation.

Another impact of the increase in temporary accommodation was the “hindering” of the Housing Executive’s efforts to prioritise homelessness prevention measures.

It was found that around £4.5 million (6%) of the 2023/24 spend by the Housing Executive was directed at preventing homelessness, despite this being at the heart of its Homelessness Strategy.

Meanwhile a lack of suitable, permanent social housing was found to be impacting the Housing Executive’s ability to tackle homelessness effectively.

It has identified a need for almost 25,000 new social houses between 2023 and 2028, however current rates of funding and capacity issues mean that new starts are falling considerably below the level required.

Many of these households rely on temporary accommodation while they wait for a permanent home.

Ms Carville described an “unprecedented demand” for homelessness services, in particular temporary accommodation.

She said this has been impacted by an inadequate supply of social housing, the impact of the coronavirus pandemic and the cost-of-living crisis.

“Homelessness has impacts across society, with long-term consequences for health and education outcomes, and the costs to the public purse are significant and rising,” Ms Carville said.

“Dealing with these issues is complex and my report acknowledges the efforts being made by the Housing Executive and those working in the sector under challenging circumstances.

“However, in order to ensure the best use of public money, there is a need to reduce spending on hotels and B&Bs, and for an increased focus on homelessness prevention and the supply of new social housing.

“Until these key issues are resolved, demand for homelessness services is likely to continue to escalate to a point where it may become financially unsustainable.”