Northern Ireland’s Homelessness Crisis: Rising Costs & Demand

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The rising demand for temporary accommodation is placing an unsustainable financial burden on homelessness services across Northern Ireland. Recent data reveals a staggering increase in the number of households relying on temporary accommodation, with approximately 4,700 households seeking refuge in 2023-2024. This figure represents a significant rise of 176% compared to the 1,700 households recorded per night in 2017.

The escalating demand has resulted in the Housing Executive incurring almost £39 million in costs for temporary accommodation during the 2023-2024 financial year. Disturbingly, this surge in expenditure is hampering the organisation’s ability to implement critical homelessness prevention measures. These insights are highlighted in a comprehensive report from the Comptroller and Auditor General, Dorinnia Carville.

Carville’s report provides a thorough examination of how the landscape of homelessness services has transformed since 2017, focusing on the underlying factors driving the increased demand and their subsequent financial implications for the Housing Executive. While the number of households presenting as homeless has remained relatively stable, the financial outlay required to address homelessness has skyrocketed. Notably, the costs associated with temporary accommodation accounted for over half of the Housing Executive’s total spending on homelessness services in 2023-2024.

A significant portion of this expenditure was directed towards self-contained, single-let accommodation. However, a troubling trend is emerging: the Housing Executive spent over £12 million on hotels and bed-and-breakfasts (B&Bs) last year—an increase from approximately £7.5 million in 2022-2023 and a mere £0.9 million in 2018-2019. The report highlights a concerning disparity, noting that while only about 10% of households are placed in hotels and B&Bs, these placements account for over 30% of the annual expenditure on temporary accommodation.

In addition to the soaring costs, the reliance on temporary accommodation has significantly hindered the Housing Executive’s efforts to prioritise homelessness prevention strategies. Alarmingly, only a small fraction of the organisation’s budget—around £4.5 million in 2023-2024, which constitutes approximately 6% of total homelessness services expenditure—is allocated to prevention initiatives. This underfunding is particularly concerning given that effective homelessness prevention sits at the core of the Housing Executive’s Homelessness Strategy.

The report further details the detrimental impact of a lack of suitable, permanent social housing on the Housing Executive’s ability to effectively combat homelessness. The Housing Executive has identified a pressing need for nearly 25,000 new social housing units between 2023 and 2028. However, current funding rates and capacity constraints mean that the actual number of new starts is falling drastically short of the required levels. Consequently, allocations for social housing are failing to keep pace with the ever-growing demand.

Since 2017, the number of homeless households on the social housing waiting list has surged by 81%. Disturbingly, around 12,000 of these households have been on the waiting list for over four years. Many find themselves reliant on temporary accommodation while they await a permanent home, exacerbating the challenges faced by both the individuals and the services designed to assist them.

In response to the report’s findings, Dorinnia Carville, Northern Ireland’s Comptroller and Auditor General, commented on the critical situation:

“There is currently an unprecedented demand for homelessness services, particularly temporary accommodation, which has been severely affected by an inadequate supply of social housing, the repercussions of COVID-19, and the ongoing cost-of-living crisis. The implications of homelessness extend throughout society, leading to long-term consequences for health and educational outcomes, while the financial burdens on public resources continue to escalate.”

Carville acknowledged the complexities involved in addressing these pressing issues and recognised the diligent efforts made by the Housing Executive and those working within the sector, especially in such challenging circumstances. However, she emphasised the crucial need to ensure the optimal use of public funds. Carville highlighted the urgency of reducing spending on hotels and B&Bs, advocating for a renewed focus on homelessness prevention and the urgent supply of new social housing. If these pivotal issues remain unresolved, the demand for homelessness services is likely to continue its alarming trajectory, potentially reaching a point of financial unsustainability.

In conclusion, the findings of this report underscore the urgent need for a concerted effort to address the systemic issues contributing to homelessness in Northern Ireland. As the demand for temporary accommodation continues to rise, it is imperative that policymakers, stakeholders, and the wider community come together to implement effective strategies aimed at preventing homelessness and increasing the availability of affordable housing options. The future of countless households depends on our collective commitment to tackling these challenges head-on.