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The UK is in the middle of a major housing crisis, and it’s not just a numbers game—it’s a matter of lives. The lack of affordable housing is pushing more and more families toward homelessness, and that pressure is only growing. A report from April 2025 revealed that over 164,000 children are living in temporary accommodation across England—an all-time high. It’s a staggering number. In fact, temporary accommodation has even contributed to the deaths of at least 74 children over the past five years, many of them under the age of one. Just think about that for a moment—164,000 children with no permanent home, no safe space to grow up. Sadly, for many, ‘temporary’ accommodation is far from temporary – this is a crisis that can’t be ignored.
The lack of affordable housing is a key factor driving this crisis. More families are being pushed into overpriced, poor-quality homes, which creates a domino effect—undermining life chances, stifling economic growth, and putting immense pressure on public services like the NHS. In fact, the health and wellbeing consequences of homelessness are severe, leading to a strain on both health and social care systems.
What’s even worse is the strain on local authorities. In the year from April 2023 to March 2024, local councils spent £2.29 billion on temporary accommodation. In London alone, boroughs were forking out nearly £4 million a day — approximately £114 million a month. As the housing stock shrinks and costs rise, many councils are resorting to moving families out of their areas, causing major disruptions. This means lost support networks, children’s education is thrown off track, and families are increasingly isolated. The financial toll is unsustainable, and local authorities are at breaking point.
The issues don’t stop there. Supported housing—homes for people with specific needs like mental health conditions or disabilities—is also in crisis. More than 150 organisations, including Age UK and Refuge, have raised the alarm, warning that without urgent action, tens of thousands of vulnerable people could face homelessness. This is a growing problem that cannot be ignored.
The human cost of this crisis is immense. Living in poor-quality, unaffordable housing doesn’t just affect people’s physical and mental health—it limits their opportunities and puts them at increased risk of violence and financial instability. It’s a vicious cycle that needs to be broken.
Governments have tried to address homelessness by increasing the supply of affordable housing, with the current administration committing to build 1.5 million new homes by 2029. While that sounds promising, the numbers tell a different story. Today, just 16% of England’s housing stock is social or affordable housing—down from 20% in 2000. The National Housing Federation estimates that England needs 145,000 new affordable homes each year to meet demand, with 90,000 of those needing to be social rent homes. Unfortunately, the government’s targets have been repeatedly revised down, and the gap between supply and demand continues to grow.
The good news is there’s still time to change course. The government’s upcoming 2025 Spending Review is a crucial moment. It’s expected to include long-term investment into social and affordable housing—something that’s desperately needed to stabilize supported housing and boost the supply of affordable homes. This is a chance to make a real, lasting impact on the housing crisis.
As Kate Henderson, CEO of the National Housing Federation, put it, “The fact that families face waiting lists for an affordable home longer than their children’s entire childhood is a national scandal.” No child should grow up in temporary housing that’s overcrowded, insecure, and poor-quality. We need more than just promises—we need action. Investment in social housing is about more than just building homes; it’s about creating opportunities, improving public health, and ensuring a better future for everyone. The 2025 Spending Review could be the moment we turn the tide on the housing crisis in relation to the provision of affordable homes, but it’s up to the government to step up and make it happen.
Michelmores has a team attending UKREiiF 2025. We look forward to engaging in meaningful conversations around the opportunities and challenges in housing delivery, as well as wider real estate issues. Please connect with our team and explore how we can shape the future of the built environment together.
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