National Audit Office to investigate resilience of temporary accommodation system

The spending watchdog said its report would assess:

• how effectively the Ministry of Housing, Communities and Local Government provides stewardship of temporary accommodation
• how effectively central government and local government work together to balance immediate pressures with longer-term solutions
• whether the temporary accommodation system delivers suitable accommodation and positive outcomes for households.

The NAO said: “Local authorities in England have a statutory duty to secure suitable temporary accommodation for eligible households facing homelessness, until longer-term housing is identified. It can include hostels, bed and breakfasts and privately leased accommodation. Government has set out ambitions to reduce homelessness and make the use of temporary accommodation rare, short-term and safe.”

The inquiry comes against a backdrop of demand for temporary accommodation increasing significantly in recent years.

At the end of March 2026, a record 135,600 households in England were living in temporary accommodation. This is around 90% higher than a decade earlier and 4% higher than the previous year.

The NAO said: “Increasing demand and local authorities’ ability to secure suitable accommodation is putting pressure on the financial sustainability of the temporary accommodation system. In some areas, these costs are also affecting local authorities’ wider financial sustainability. Evidence also suggests that prolonged stays in temporary accommodation can have negative impacts on households, particularly children.”