More than one in four people have experienced housing insecurity in the past five years, new Better Society Index reveals

Published

  • Over a quarter (27%) of the public surveyed say they or someone close to them has experienced housing insecurity in the past five years. Among 18-34s, the figure rises to 47%.
  • Almost half of respondents believe homelessness is both a significant issue in their local area (49%) and getting worse (43%).
  • On average the public believe that 28% of their council tax goes toward homelessness services - nearly 10 times higher than local authority data suggests.
  • Launched in 2026, the Better Society Index is an annual piece of research looking at how social impact investment can support public service delivery across the UK. This year’s Index draws on local authority revenue and expenditure data, nationally representative survey findings and Freedom of Information (FOI) requests to examine how homelessness is being recorded, resourced, and experienced in the UK.

10th March 2026 - More than a quarter (27%) of people in the UK say they or someone close to them has experienced housing insecurity in the past five years, according to new research from Better Society Capital (BSC). Among younger adults aged 18-34, this rises to 47%, highlighting the growing prevalence of housing instability across younger generations in the UK.

Housing insecurity includes experiences such as sofa surfing, the risk of eviction, or time spent in temporary accommodation. Together, the findings suggest that housing insecurity has touched the lives of more than 13.5 million people* across the UK in recent years.

Despite this widespread experience, public understanding of how homelessness is funded and addressed locally remains limited. On average, people believe that 28% of their council tax goes toward homelessness services, which is almost ten times higher than preliminary local authority returns suggest. Half of respondents (52%) say they do not know how much is spent in their area.

Over half of the public surveyed (56%) support the use of public-private partnerships to deliver housing and homelessness services, with just 8% opposed, and emphasise proof of value for money, transparency and local accountability as drivers that would increase their level of support. Charities and social enterprises are regarded as the most trustworthy organisations to deliver housing and homelessness services effectively with 71% of respondents saying they would trust them to deliver, followed by housing associations (55%) and local authorities (47%).

Similarly, more than half of respondents (52%) said they would be willing to invest a portion of their own savings or pension in products tackling social issues such as homelessness, provided this had little impact on their financial returns. 10% of respondents overall said they would be willing to do so regardless of the impact on returns. With just 0.05% of total UK pension assets currently allocated to social impact investment - an approach to investing that seeks to tackle social issues generating positive social impact alongside financial returns - this suggests significant untapped potential.**

These pressures are already being felt by councils. Local authorities responding to the inaugural Better Society Index reported a combined £1.65bn in expenditure on homelessness services in 2024/25, with a median year-on-year increase of 10.62% (mean of 18.57%). Temporary accommodation continues to be a major driver of costs, with councils recording more than 3,000 people needing housing every night for the last year alone. At the same time, there is wide variation in both spending and demand between areas, with urban councils typically facing higher levels of pressure.

In more than half of local authorities, cost pressures from homelessness services outstrip entire planning and development budgets and are on par with expenditure on highways and transport services.

Across the UK, the spending trends across England, Scotland, Northern Ireland and Wales suggest an average spending increase 2023/2024 – 2024/2025 of 18.57 per cent. However, regional disparities emerge, as set out in Table 1 below.

Table 1: Region by Region Breakdown of Spending Trends (2023/2024 – 2024/2025) (positive % is an increase, negative % is a decrease)
Region/Nation Regional Average Year on Year Percentage Change in Spending
London 43.67%
South East 32.52%
Yorkshire and The Humber 28.95%
East Midlands 28.54%
North East 17.50%
West Midlands 15.45%
North West 11.64%
East of England 10.94%
Northern Ireland 9.45%
South West 5.78%
Scotland 4.36%
Wales -2.53%
  • Drew Ritchie, Director of Better Society Capital comments: 

    “This data freshly reminds us that homelessness is not a fringe issue. It is a major and pressing concern for both the public and the local councils working on their behalf.

    However, the analysis also highlights an appetite for innovative solutions. A majority of savers and pension holders would like to see their money make a difference. Public attitudes to private investment working alongside Government are positive and the public overwhelmingly trusts charities and social enterprises to deliver those services effectively. Social investment combines these key ingredients, building partnerships to deliver innovative finance solutions to tackle entrenched social issues and ensuring tax payer money goes further. After more than 10 years of investing into housing, we believe that social investment should be a bigger part of the solution to homelessness in the UK.

    The new Office for the Impact Economy in Cabinet Office is well-placed to coordinate efforts and use this insight into public attitudes to unlock impact finance solutions across government. We look forward to seeing how their partnership with social investors, philanthropists and responsible-driven business evolves to tackle joint problems.”

    View the Index
  • --ENDS--

    Notes to Editors:

    *Population estimates calculated by taking proportion of adult UK population that corresponds with proportion of nationally representative polling sample.

    **Estimate calculated from Better Society Capital’s Market Sizing Report 2024, which estimates the UK’s social impact investment market to be £10bn at the end of 2023, with pension funds representing 21% of this – of an estimated £3.8tn of total UK pension assets.

    Better Society Capital has made public the findings and underlying data in a dashboard on their website.

    Methodology: 

    • Public Opinion Research: Nationally representative online public survey of n=2,032 UK adults over the age of 18 commissioned by Better Society Capital. Nationally representative sample using quotas and weighting by age, gender, UK region and GE2024 vote. Fieldwork conducted 28 – 30 October 2025.
    • Freedom of Information Requests: analysis of 258 local authority FOI responses returns received.  Contains public sector information licensed under the Open Government Licence v3.0.
    • Analysis of:
      • Ministry of Housing, Communities and Local Government (2024), Local Authority Revenue Expenditure and Financing England: Revenue outturn multi-year data set Ó Open Government Licence V3.0
      • Ministry of Housing, Communities and Local Government, Local authority revenue expenditure and financing England: 2024 to 2025 individual local authority data – outturn Ó  Open Government Licence V3.0
      • Ministry of Housing, Communities and Local Government, Revenue outturn housing services (R04) 2023 to 2024 Ó  Open Government Licence V3.0
      • Ministry of Housing, Communities and Local Government, Revenue outturn housing services (R04) 2024 to 2025, Ó  Open Government Licence V3.0
      • Ministry of Housing, Communities and Local Government, Tables on Homelessness, Ó  Open Government Licence V3.0
      • StatsWales, Households for which assistance has been provided by outcome and household type (2025), Ó Open Government Licence V3.0
      • Cabinet Secretary for Housing, Homelessness in Scotland: 2024 – 2025, Ó  Open Government Licence V3.0
      • For the comparison of data received through FOI, filling missing values and interpretation.
      • Office for National Statistics (2025), Population Estimates for the UK, England, Wales, Scotland and Northern Ireland: mid-2024 for latest estimates of the UK population

    Glossary

    Presentations: When an individual or household approaches a local authority for housing advice, support or homelessness assistance. Not all presentations result in a formal homelessness application or assessment, but they indicate pressure on frontline services.

    Homelessness and Statutory homelessness:  Legislation provides that local authorities are legally obliged to assess households under homelessness legislation on presentation as being already homeless or at risk of homelessness. Cases eligible for assistance under legislation typically meet specific eligibility, priority need and unintentionally homeless criteria.  While all statutory homeless individuals are homeless, not all homeless individuals qualify for the definitions framed under legislation, which can include sleeping rough, those in unstable living conditions and those at risk of losing their homes.

    Temporary accommodation (TA): Short-term housing arranged by local councils for people assessed as homeless. This can include hostels, B&Bs, or private rented properties. It is often costly and not always suitable for long stays.

    Housing insecurity: A broad term covering unstable or precarious housing situations, such as risk of eviction, sofa surfing, unaffordable rent, or living in overcrowded or temporary accommodation. Not all people experiencing housing insecurity are formally classed as homeless.

    Homelessness prevention: Support services or interventions aimed at helping people avoid becoming homeless – such as rent arrears support, mediation, or securing alternative accommodation before a crisis occurs.

    Homelessness Live Tables: Regularly updated datasets published by the Ministry of Housing, Communities and Local Government (MHCLG)that track key homelessness metrics across England.

    Relief duty: A local authority’s obligation to help a household that is already homeless to secure suitable accommodation, usually within 56 days.

    Net cost: The total cost of homelessness services to councils, including accommodation and staffing, minus any external funding or grants received (e.g. from central government).

About Better Society Capital

Better Society Capital is the UK’s leading social impact investor. Our mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. We do this by investing our own capital and helping others invest for impact too.

Since 2012, we have helped build a market that has directed more than £11 billion into social purpose organisations tackling issues from homelessness and mental health to childhood obesity and fuel poverty, a twelve-fold increase in 13 years.

Press Contact:

Lauren Rae, Senior Manager, External Communications at Better Society Capital

Email: lrae@bettersocietycapital.com

Telephone: 07464799565

Montfort Communications

bsc@montfort.london