A recent report from the NI Audit Office has revealed that homelessness services in Northern Ireland are facing financial pressure due to an unprecedented demand for temporary accommodation. The report highlights that the number of households in temporary accommodation has drastically increased from 1,700 in 2017 to about 4,700 in 2023-2024. This surge in demand has led to a significant financial burden, with the Northern Ireland Housing Executive (NIHE) spending nearly £39m on dealing with temporary accommodation demand in the mentioned period.
One of the main challenges identified in the report is the lack of suitable permanent social housing, which hampers the NIHE’s efforts to effectively combat homelessness. The report emphasizes that the rising costs of tackling homelessness have not been matched by an increase in households presenting as homeless. The majority of the NIHE’s spending on homelessness services in 2023-24 was allocated to providing temporary accommodation, with over £12m spent on hotels and B&Bs alone.
Furthermore, a shortage of suitable social housing has impeded the NIHE’s ability to address homelessness prevention effectively. The report states that only a small fraction of spending is dedicated to preventing homelessness, despite being a core component of the Homelessness Strategy. The backlog of homeless households on the social housing waiting list has grown by 81% since 2017, with many families relying on temporary accommodation while awaiting a permanent home.
The report also underscores the long-term consequences of homelessness on health and education outcomes, as well as the significant financial implications for the public sector. It calls for a reduction in spending on emergency accommodation like hotels and B&Bs, prioritizing homelessness prevention, and boosting the supply of new social housing. The report warns that unless these critical issues are addressed, the demand for homelessness services may reach unsustainable levels, potentially jeopardizing the financial viability of addressing homelessness in Northern Ireland
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