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Annual temporary accommodation spend rises in Northern Ireland

The Northern Ireland Housing Executive’s (NIHE) annual spend on temporary accommodation increased by 16% last year to hit nearly £40m.

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The Northern Ireland Housing Executive’s in Belfast
The Northern Ireland Housing Executive estimated it spent £6,000 per night to place people in temporary accommodation (picture: Alamy)
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LinkedIn IHMAnnual temporary accommodation spend rises in Northern Ireland #UKhousing

LinkedIn IHMThe Northern Ireland Housing Executive’s annual spend on temporary accommodation increased by 16% last year to hit nearly £40m #UKhousing

Unaudited figures published by the Northern Ireland Assembly revealed that £39.9m was spent in the year up to March 31 2025, up from £34.4m the year before.

The areas where the NIHE spent the most were Belfast (£18.6m), Derry & Strabane (£8.6) and Armagh, Banbridge & Craigavon (£2.2m).

The figures were released by communities minister Gordon Lyons following a request from Northern Irish MLA Mark Durkan.

The rising costs follow unprecedented growth in demand for temporary accommodation in the region.

A recent report by the Centre for Homelessness Impact found that overall spending in Northern Ireland had quadrupled in five years, rising £7.55m a year in 2018-19 to £34.4m in 2023-24.

The report also flagged the huge rise in what the NIHE calls ‘non-standard’ temporary accommodation, which comprises hotels and B&Bs.

The Housing Executive estimated that in the Belfast alone, it spent more than £6,000 per night on placing people experiencing homelessness into accommodation such as hotels.

The latest figures come after data published last year that revealed there were 5,378 children living in temporary accommodation in Northern Ireland, a 121% increase since 2019.

Earlier this year, the NIHE revealed plans to buy 600 homes in a bid to ease the crisis and reduce the cost of providing temporary accommodation by up to £75m over the next seven years.

A report by the Northern Ireland audit office, published in March, found that rising demand for temporary accommodation was causing “potentially unsustainable” financial pressure for homelessness services in the region.

Last month, Inside Housing revealed that Northern Irish housing associations are planning to start 8,000 new social homes over the next three years, and new data showed which landlords have the biggest pipelines and where homes will be built.

In England, the number of children living in temporary accommodation has risen by 12% in a year, as charities warned that the crisis is escalating to “new extremes”.

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