How did we get here? PAC warns reactive homelessness system is costly and failing 62,000 people

Northern Ireland’s homelessness system is under “extreme pressure”, trapped in a reactive cycle that is costing tens of millions each year while failing to deliver long-term solutions.

That is the stark conclusion of a new report from the Northern Ireland Public Accounts Committee (PAC), published following an inquiry into the effectiveness and value for money of homelessness services.

The Committee says spiralling spending on temporary accommodation — including a sharp rise in the use of hotels and B&Bs — combined with underfunded prevention, weak strategic management and poor data, is deepening the crisis rather than resolving it.

“Disturbing complacency” and strategic breakdown

The PAC found that strategic management of homelessness has historically been poor, referring to a “disturbing degree of complacency” and a “breakdown of competence” over the years. It noted that the Northern Ireland Housing Executive (NIHE) took 14 years to develop its first formal homelessness strategy.

While Northern Ireland operates under a unique legal framework, the statutory duties prioritise supporting those who are already homeless rather than preventing homelessness in the first place.

The Committee concluded that this reactive approach has created a system dominated by high-cost, short-term interventions instead of sustainable outcomes.

The Department for Communities (DfC), which is responsible for homelessness and housing policy, and the Housing Executive, which is tasked with responding to it, both gave evidence during the inquiry alongside organisations from the Voluntary and Community Sector.

The report follows PAC’s inquiry, which began in October 2025.

Demand surging, children affected

The scale of growth in homelessness is significant.

Over the past decade, the number of households with Full Duty Applicant (FDA) status — those legally owed a housing duty — has increased by 135%.

By late 2025, approximately 62,000 individuals from 32,000 households on the social housing waiting list were classified as having homelessness status. Of those deemed legally homeless, 19,657 were under the age of 18.

Daniel McCrossan MLA, Chair of the Public Accounts Committee, said:

“The Committee is alarmed by the rising costs of temporary accommodation and the impact long stays in housing like this has on the health and education of individuals and families.

“The number of homeless households in Northern Ireland has risen by more than 10,000 in the last five years. We believe that the short-term and reactive nature of preventative work on homelessness is driving the crisis we see today. Our view is that an adequate supply of social and affordable housing is the key to tackling homelessness.”

£75 million a year — and rising

Total annual gross expenditure on homelessness reached £75.3 million in 2023–24 — a £26 million increase in just three years. In 2024–25, the Housing Executive spent £75 million tackling homelessness.

The most dramatic pressure point is temporary accommodation.

In 2018–19, the Housing Executive spent £7.6 million on temporary accommodation. By 2024–25, this figure had risen to more than £40 million. In 2023–24 alone, £38.6 million was spent on temporary accommodation.

Spending on hotels and B&Bs rose from £0.9 million in 2018–19 to £12.2 million in 2023–24 — a 13-fold increase. In 2024–25, £17 million of temporary accommodation spending was on ‘non-standard’ hotels and B&Bs.

The Committee has repeatedly expressed concern about reliance on such accommodation, particularly for families.

Mr McCrossan said:

“Despite being a key pillar of the Department’s Homelessness Strategy, prevention has been consistently underfunded, as well as being short-term and reactive in nature.

“We are calling for a single strategic vision for homelessness to be developed and agreed between the Department and the Housing Executive, alongside a range of measures to assess long-term outcomes.”

Five years in “temporary” housing

The report highlights a worrying trend in the length of stay in temporary accommodation. Nearly 8% of households have been in temporary housing for five years or more — raising serious questions about whether emergency provision is becoming semi-permanent.

The top three reasons for homelessness presentations are:

1. Accommodation not reasonable (22.7%).

2. Sharing breakdown or family dispute (21.6%).

3. Loss of rented accommodation (14.6%).

At the same time, long-term supply constraints continue to bite. Since the Housing Executive stopped building homes in 2002 — transferring responsibility to housing associations — a structural bottleneck in social housing delivery has developed.

The Committee welcomed plans by NIHE to reduce reliance on hotels and B&Bs through the purchase of 600 temporary accommodation units. However, members said they were surprised that officials could not provide clearer timescales or locations.

They were also told only of the Department’s “ambition” to deliver 33,000 new social homes, rather than enforceable targets.

Poor data masking the true scale

The PAC also raised concerns about transparency and monitoring.

Mr McCrossan said:

“The poor data available also masks the true scale of the issue. In 2025 there were 32,000 homeless households on the Housing Executive’s social housing waiting list - but the number of individuals affected was almost twice that at 61,000.

“We need more meaningful, people-focused data. We want the Department to ensure that, within the next six months, any published data on homelessness includes the number of people affected.”

The Committee further criticised previous action plans for “significant carry-over” of commitments from year to year with limited demonstrable progress.

Systemic pressures and stalled reform

The PAC found that systemic pressures have compounded the crisis.

The suspension of the Northern Ireland Assembly and prolonged periods without a sitting government delayed legislative reform that could have strengthened homelessness prevention.

Homelessness, the report stresses, is not solely a housing issue but intersects with health, justice and education. However, frustration was expressed that senior officials in oversight groups often lacked the authority to make cross-departmental decisions.

Mr McCrossan said:

“Homelessness is a complex issue which is much more than the absence of a physical home. For those who experience it, there can be long-term consequences for their health and education.

“Department officials told us the Homelessness Strategy was ‘sound’ but its delivery had been impacted by a range of factors including Covid-19 and the cost-of-living crisis. Witnesses from community and voluntary organisations disagreed and said that the roots went deeper than this.

“While officials attributed a lack of preventative work entirely to funding constraints, others said that a legislative duty to prevent homelessness here would result in more money being made available and could help with better cross-sector collaboration.”

From “treating” to “curing” homelessness

The Committee is recommending strengthened legislation to place homelessness prevention on an equal legal footing with the duty to provide accommodation.

It also calls for the Department to work with the Housing Executive to explore options for a statutory duty in relation to homelessness prevention and to bring forward proposals to the Minister within 12 months.

The PAC highlighted support for the “Housing First” model — which provides permanent housing quickly, followed by intensive support — as a more effective alternative to prolonged stays in temporary B&B accommodation.

In his closing remarks, Mr McCrossan said:

“We are recommending the Department works with the Housing Executive to explore options for a statutory duty in relation to homelessness prevention and that they bring forward proposals to the Minister for consideration within 12 months.”

He added that the practice of ‘treating’ homelessness with temporary accommodation rather than ‘curing’ it through prevention was shortsighted and had contributed to rising numbers.

Behind the figures, the Committee emphasised, are thousands of individuals and families facing real hardship. Without structural reform, enforceable targets and a shift towards prevention, the financial cost — and the human impact — are set to keep climbing.