Children housed in temporary accommodation soar by over 70% in county areas as councils warn rural homelessness is becoming a ‘deepening crisis'

More than 23,000 children are now growing up in temporary accommodation across England’s counties - enough to fill an average market town- as councils warn that rural homelessness is becoming a ‘deepening crisis.’

New analysis from the County Councils Network (CCN) shows record numbers of families are being housed in bed and breakfasts, hostels and expensive ‘nightly-paid’ accommodation across county and rural areas.

Local authority leaders say that the homelessness crisis is no longer confined to just England’s major cities, with over 116,000 people assessed as homeless in county and rural areas over the last year. Consequently they have had to place record numbers of children and households in temporary accommodation, with these costs becoming one of the fastest-growing financial pressures facing councils in county areas.

Earlier this week the government announced the first £10bnof its Social and Affordable Homes Programme, designed to cut the number offamilies in temporary accommodation. Whilst this is only the first tranche of funding, virtually all of the money announced was for England’s major cities.

With the new Prime Minister pledging to ‘end rough sleeping’, county leaders say the government must now recognise growing temporary accommodation and rural homelessness numbers as significant issues, alongside urban challenges.

The latest homelessness data, analysed by the CCN, shows:

• In March this year there were a record 23,186 children in county and rural areas growing up in places such as bed and breakfasts, hostels and private property. The numbers have risen by 74% since March 2020 —almost double the national increase(38%) and five times the rate seen in London (15%).
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• Overall, the number of households in temporary accommodation in county and rural areas is also at an all-time high. In March 2026 there were 22,230 households in temporary accommodation, which is an increase of almost 80% over the last six years - outpacing the national rise of 48% and almost three times the rate seen in London (28%).
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• Consequently, costs are ballooning. Councils in county areas spent £124m in 2019/20, just before the Covid-19 pandemic. Fast forward six years later and those councils were spending £373m on temporary accommodation in 2024/25. This trebling of spend – and a 201% increase – is a faster rate than anywhere else in England.
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• Almost one in five of these households (24%) are based in expensive ‘nightly paid’ private accommodation in county areas. This figure has grown from 17% in 2020,illustrating the increasing paucity of options for county and rural councils.
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• Homelessness is also continuing to rise across county and rural areas. In 2025/26, 116,734households were assessed as homeless in counties, up from 108,627 in 2019/20. Consequently, local authority costs have soared: in 2019/20 councils in county areas budgeted £161m for homelessness, but this increased to £447m this year.
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• Rough sleeping has also reached a record level in county and rural areas, showing the scale of the challenge for the new Prime Minister. In Autumn 2025, 1,821 were found sleeping rough in counties, which is 37% of England’s entire total.

Councils say the cost-of-living crisis, soaring rents, and a lack of affordable homes in many areas have helped contribute to the rising numbers.

Whilst local authorities can claim back temporary accommodation costs, it is capped at 90% of Local Authority Housing Allowance rates – and at rate set in 2011.

Councils say government funding has failed to keep pace and accommodation costs have increased significantly over the last 25 years, meaning the shortfall is increasingly met from local authority budgets. The CCN has previously called on ministers to update the subsidy so councils are no longer forced to absorb rapidly rising costs. Recognising the increasing costs councils are facing, the network says addressing this is more important than ever.

With the new Prime Minister Andy Burnham pledging to end rough sleeping, the CCN says that it is vital that the growing rural homelessness crisis is addressed by government.

The CCN is calling on ministers to ensure homelessness and temporary accommodation funding reflects rising demand and the specific challenges in county areas, and for government to recognise rural homelessness as a core part of any future homelessness and rough sleeping strategy.

Cllr Andrew Husband, Housing and Planning Spokesperson for the County Councils Network, said:

“More than 23,000 children are now growing up in temporary accommodation across England's counties. That’s enough young people to fill an average sized market town in accommodation that was never designed to be home.

“Homelessness is no longer just a big city issue – it is now a deepening crisis in rural areas. I see it first hand in my own large rural county of Durham. Across England's counties record numbers of families are now in temporary accommodation. County and rural unitary councils work tirelessly to support residents at risk of homelessness, but demand is rising far faster than funding and is placing enormous pressure on local budgets.

“If the government is serious about ending homelessness the thousands of people housed in temporary accommodation, they must recognise this is no longer just a city problem. Rural England needs the same attention, investment and, ultimately, a long-term solution.”

Responding to this week's announcement on the Social and Affordable Homes Programme, Cllr Husband added:

“Whilst we recognise this is only the first tranche of money in the Social and Affordable Homes Programme, it is notable that virtually all the funds announced are going to England’s major cities, despite our research showing that rural homelessness is a deepening crisis. It is vital that the government recognises that homelessness is now both an urban and rural challenge and provides funding to support the delivery of more social and affordable housing in England’s counties.”

The analysis comes as the CCN launches a major new project with Newton, which will explore the reasons for increasing rural homelessness and rise in the use of temporary accommodation. It will provide detailed financial analysis and future projections on demand and costs amongst county and rural unitary authorities. It will also explore the opportunities for councils to move to a more preventative model, supported by government policy tailored to county areas, which would enable councils to intervene earlier and prevent rising homelessness.

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