NAO launches inquiry into government approach to temporary accommodation

The National Audit Office (NAO) is set to examine whether the government is overseeing a resilient temporary accommodation (TA) system that delivers value for money.

A report due next Spring will assess how effectively the Ministry of Housing, Communities and Local Government provides stewardship of TA and how well central and local authorities work together to balance immediate pressures with longer-term solutions.

It will also determine whether the current TA system delivers suitable accommodation and positive outcomes for households.

The probe comes as the demand for TA has soared in recent years. At the end of March 2026, a record 135,600 families in England were living in TA. This figure is around 90% higher than a decade earlier and 4% higher than the previous year.

“Increasing demand and local authorities’ ability to secure suitable accommodation is putting pressure on the financial sustainability of the temporary accommodation system,” wrote the NAO.

“In some areas, these costs are also affecting local authorities’ wider financial sustainability. Evidence also suggests that prolonged stays in temporary accommodation can have negative impacts on households, particularly children.”

The current TA system in England has been subject to intense criticism from the housing sector. In April this year, a report from the all-party parliamentary group for households in TA revealed how poor conditions resulted in the deaths of 104 children within the space of six years.

Over the summer, the 165,000 Reasons coalition wrote to housing secretary Angela Rayner urging her to formalise local authority reporting on TA in a bid to “ensure the realities of England’s housing emergency are consistently recognised within local decision making”.

Meanwhile, private landlords called on the government to unfreeze housing benefit rates to allow people on lower incomes to access private accommodation and reduce the use of TA.