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The UK’s housing crisis is forcing local councils to raise council tax as they struggle to cover the soaring costs of temporary accommodation. Families like Patricia Brown, who has been living in a hotel for eight months, are at the center of this crisis, which has left local governments with record-high spending on emergency housing.
Why Is Council Tax Increasing?
More Families in Temporary Housing – Councils have spent millions housing people in hotels and B&Bs, often in poor conditions.
Ballooning Costs – London Councils overspent by £330 million on temporary housing in 2024.
Council Tax Hikes – Newham raised tax by 9%, citing homelessness costs as the main reason. Trafford in Greater Manchester raised council tax by 7.5% for the same reason.
The Scale of the Problem
- 123,000 households in England now live in temporary accommodation.
- £2.1 billion was spent on housing the homeless in 2024, up £500 million from 2023.
- Newham alone has 7,000 schoolchildren living in temporary housing.
“We have no other option but to put up council tax,” said Grace Williams, Deputy Chair of London Councils.
What’s the Solution?
More social housing investment – Experts argue that building affordable homes is the only long-term solution.
Better use of empty properties – Some taxpayers demand councils repurpose vacant buildings rather than paying for hotels.
Government intervention – London Councils want national funding to reduce costs.
“With £4 million a day being spent on emergency accommodation in London alone, we need a safer, more sustainable solution,” said Dr. Laura Neilson of Shared Health.
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