Temporary Accommodation in 2026: The Numbers Behind the Pressure

Local authorities in England are under mounting strain over temporary accommodation; the latest government figures show 131,140 households were in temporary accommodation as of March 2025, a near-record high and up nearly 12% year-on-year. Children accounted for more than 83,000 of these households.

At the same time, councils are spending ever larger sums to meet their statutory duties. In 2024–25, total expenditure on temporary accommodation reached £2.8 billion, a 25% rise on the previous year and more than double the cost a few years earlier.

These figures matter for both sides of the housing market and they highlight why innovative approaches to housing provision are taking on greater importance.

Why Temporary Accommodation Has Become a Long-Term Challenge

Temporary accommodation was always intended as a short-term fix: a stopgap while councils secure long-term housing solutions for those who are homeless or at risk. But structural pressures have stretched that model far beyond its design.

Councils face three connected problems:

• Rising demand: homelessness applications and placements continue to increase.

• Funding gaps: councils shoulder the upfront cost of nightly or weekly placements before being reimbursed at rates frozen nearly 15 years ago.

• Limited supply: there simply aren’t enough affordable or social homes to move people out of temporary housing.

In London alone, almost 75,000 households were in temporary accommodation mid-2025, which was more than half of the entire country’s figure and boroughs face substantial funding shortfalls as a result.

Why This Matters to Landlords

For landlords, these pressures can read as threats, but there’s another way to look at them.

Councils are legally obliged to house people who are homeless or at risk where they meet statutory criteria. That means significant and ongoing demand for homes that meet regulatory and safety standards.

For private landlords who want to rent property to the council, particularly through structured agreements like guaranteed rent, this context is important:

• Councils want quality, compliant stock that can stand up to inspection and meet housing duties.

• They are increasingly looking for long-term partnerships rather than short-term nightly lets.

• The rising cost of temporary accommodation creates an incentive for councils to secure stable, cost-effective solutions.

By offering guaranteed rent and long-term occupancy, landlords can position their properties as part of the solution rather than part of the short-term scramble.

Why Guaranteed Rent Makes Sense Now

Guaranteed rent arrangements can help align landlord income security with council housing needs:

Predictable income: no void periods, no arrears, no management fees.

Compliance support: councils require licensed, safety-certified properties. With Apex you get clarity on what is needed upfront.

Professional management: councils prefer stable supply from reputable providers, not high-turnover listings.

This doesn’t replace the need for compliance; it ensures you are paid while compliance standards are met and occupants are looked after.

Apex’s Perspective

The temporary accommodation crisis isn’t going away, and landlords can be part of the solution.

At Apex, we work with councils and landlords to deliver long-term, stable housing solutions. Guaranteed rent isn’t a gamble; it’s a commercial arrangement that matches councils’ statutory needs with landlords’ desire for predictable income and minimum hassle.

If you’re considering how to rent your property to the council or want to explore guaranteed rent options, let’s talk.

📞 0203 0304 241

📧 lettings@apexhousingsolutions.co.uk