A new report from the IPPR has taken aim at Britain’s approach to the homelessness crisis, and makes the case for the adoption of a truly housing first model. The report opens by questioning the current governments claims of operating through a “housing-led” approach, and argues that the current system operates much more on the basis of accommodation-based support.
The report finds that despite rising public spending on homelessness over the past decade, outcomes have continued to deteriorate. More than 130,000 households were living in temporary accommodation by September 2025—the highest figure on record—and, if current trends continue, homelessness is projected to increase by a further 25% before the end of the decade.
A true housing-led approach, the report argues, begins with the understanding that homeless individuals must be placed into their own home first, as the start of the recovery process, rather than a final stage that is to be earned through crossing a series of milestones and periods in temporary accommodation. Incorporating data and evidence from UK pilots and overseas, evidence shows that a model that prioritises a home as soon as possible can deliver a 80-90% higher tenancy retention rate after two years, and significantly lower costs per person.
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The report identifies six key barriers that stand in the way of the UK adopting a housing-led model, and recommendations to overcome them:
A chronic shortage of social housing
The most significant challenge is the lack of available social housing, which forces councils to rely heavily on temporary accommodation and limits opportunities for rapid rehousing. The report calls on the government to bring forward rapid investment into social housing delivery, as well as setting ambitious section 106 targets and prioritising bringing empty homes back into use to quickly boost the supply of social housing.
Legislative and bureaucratic constraints
Current homelessness legislation, including priority need tests, intentional homelessness rules and local connection requirements, excludes many people from support and creates unnecessary complexity. The report argues that England should move towards the more progressive approaches already adopted in Scotland and Wales.
Siloed public services
Housing, health, justice, welfare and social care frequently operate independently, preventing coordinated support for people experiencing homelessness, and cohesive data sharing and communication must be a priority between separate services.
Limited political priority
Despite the severity of the homelessness crisis, there has been a distinct lack of urgency in response on a national level. The government should establish a dedicated homelessness strategy delivery unit to oversee the goals of the government’s official homelessness strategy are delivered.
Institutional risk aversion
The report claims councils and housing providers often remain cautious about adopting innovative approaches due to financial pressures, limited evidence at scale and concerns about tenancy sustainability for people with complex needs, and the government should create a statutory duty requiring registered providers to accept homeless referrals from local authorities, similar to arrangements in Scotland.
Insufficient funding
Whilst funding is already a pressure point for homelessness services today, transitioning to a housing-led model would require the temporary double-running of both services, and incur significant transitional expenses. Although these initial expenses will require heavy investment, transitioning away from the expensive, reactionary accommodation-based model will incur future savings.
Transitioning to a housing-led approach to reducing homelessness is backed by significant data and statistical advantages, but the shift would require long-term preparation. The widespread use of TA today is not by choice, and affordable housing scarcity is the first and most significant obstacle standing in the way of a housing-first style response to homelessness. Investment in social housing over the coming years is key if the UK is to be able to start combatting homelessness at the source.
