Temporary Accommodation crisis: Record demand but RRA start could herald catastrophe

 

Temporary Accommodation crisis:  Record demand but RRA start could herald Catastrophe.

The Temporary Accommodation sector is facing an emergency due to record levels of demand and limited supply, coupled with rising costs.  London boroughs alone are spending £90 million per month providing Temporary Accommodation (TA).  The overall total of Local Authority spending on TA reached £2.8 billion in 2024-2025.

The number of households in TA hit a new record high of 135,000 as of September 30th 2025, up 7% year on year.  Of the total, 86,000 households include children, totalling 176,000, also a record high.  The demand for TA is most acute in London where there are 21 households per thousand in TA, compared with just 2.8 per thousand in the rest of England.

Now here’s the nub of the gathering catastrophe. Both Crisis and Shelter agree that the loss of a private tenancy remains a leading cause of the TA problem.   So, what is about to happen because of the Renters’ Rights Act (RRA) imminent arrival on the Statute Book?

There are about 5.5 million rented homes in the UK. Of this total, experts are forecasting that 220,000 will be withdrawn from the English market this year, principally because of pressures on landlords from the RRA which kicks in on May 1st 2026.  So, assuming that only a third of the displaced households are forced into Temporary Accommodation, this still means that demand for TA will leap this year by a staggering 50%.

It looks as if the Government, despite its avowed dislike of landlords may need to ease up a little this year, to say the least.

Jm April 28th 2026.   

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