The role of hostels in ending street homelessness
27 November 2024
By Bill Tidnam, Thames Reach Chief Executive
In our previous piece, we discussed the latest CHAIN (Combined Homelessness and Information Network) figures on rough sleeping in London. These figures, for the July to September quarter of this year, marked the highest levels ever recorded. We explored how ending street homelessness—an issue raised in the Mayoral election this spring—requires more than just providing accommodation. The ‘Everyone In’ programme, which offered respite during the pandemic, did provide temporary relief but did not offer a long-term solution. While this improvised accommodation—mainly hotels and B&Bs—was a necessary measure, it is costly and does not address the complex needs of those experiencing homelessness, nor does it provide a sustainable path to settled housing.
We know what works, and we have done it before. A network of well-resourced hostels and supported housing can provide a credible route off the streets. These services help us assess what individuals need to escape homelessness permanently. For some, the solution may be as simple as access to affordable housing—just over a quarter (28%) of people seen sleeping rough in London during this period were reported to have no needs related to alcohol, drugs, or mental health. However, 36% were recorded as having multiple needs—often linked to their homelessness—making it more likely they will stay on the streets for longer.
While rough sleeping has increased over the last 14 years, the number of hostel and supported housing beds has not kept pace. In fact, we’ve seen a reduction in provision, alongside stricter access controls and less long-term accommodation available. Most hostels are commissioned by local authorities but operated under contract by organisations like Thames Reach. Since 2010, local authorities have faced reduced funding and growing demands on their resources. In most cases, there is no legal obligation for local authorities to provide services for single people sleeping rough, meaning hostel spending is often deemed discretionary—hard to justify when budgets are tight. Hostels are typically built and owned (but not always managed) by housing associations, which have little incentive to build new facilities or improve existing ones.
For hostels to support people with complex needs and help them move away from homelessness rather than just house them temporarily, they need sufficient funding. As local authority budgets shrink, services that help people move on from homelessness have been reduced. Council officers are understandably focused on ensuring their limited funds support residents of their borough, meaning hostel spaces are often full, and stays are longer. This has made it even harder to access a hostel when needed.
Rents have increased, partly to make up for shortfalls and partly due to rising costs across the board. Housing people with complex health and substance-use needs present a financial risk, and for some organisations, there is a reluctance to work with individuals who have the greatest needs because they are the least likely to pay rent.
What needs to change?
Hostels may not be perfect and are not the solution for everyone, but if we are to treat rough sleeping as a public health crisis, then good hostels should function like an emergency room. They should diagnose the issue, provide immediate help, and swiftly move individuals to more suitable accommodation to continue their recovery.
To achieve this, we must recognise the crucial role hostels play as the first step away from homelessness. We need to invest in them, update their facilities, and ensure access doesn’t depend on where someone is seen sleeping rough. Most importantly, we must ensure people in hostels have access to the long-term housing they need to leave homelessness behind.
This will require changes in how hostels are funded, with guaranteed long-term revenue to sustain services, alongside investment in improving the physical estate. We also need to examine how resources can be shared more effectively between councils, ensuring that anyone in need can access a hostel bed.
In this context, we welcome the government’s recent consultation on licensing hostels and improving the quality of supported housing. While tackling rogue providers and ensuring good quality accommodation are essential, we must also focus on what makes hostels valuable as part of the solution to rough sleeping—adequate staffing levels, access to long-term housing, and ensuring services meet the needs of local areas.