Folkestone & Hythe District Council Temporary Accommodation Costs Hit Record £926K as Affordable Housing Falls Short

Folkestone & Hythe District Council spent £919,871 on temporary accommodation in 2024/25—its highest annual total on record—despite investing in affordable housing acquisitions and overseeing limited new construction. This marks a 13.25% increase on the previous year’s £818,123 spend, and a 239% increase since 2018/19.

 According to the Ministry of Housing, Communities and Local Government (MHCLG), this expenditure now accounts for approximately 9% of the Council’s core spending power, up from 8.3% in 2023/24. That shift reflects a growing budgetary crisis, as homelessness costs increasingly compete with other essential local services such as waste, planning, and leisure.

After several years of relatively stable spending, the cost of temporary accommodation nearly tripled between 2022/23 and 2023/24, and has continued to climb in 2024/25. The Council is now spending close to £1 million annually to house homeless households in emergency placements—such as B&Bs, hotels, and nightly-paid private lettings—many of which are unsuitable for long-term residence.

Affordable Housing: Necessary But Not Enough

Between 2018/19 and 2023/24, the Council oversaw the construction of just 135 affordable homes, averaging 23 units per year—a rate widely seen as insufficient to meet growing demand. In addition to construction, the Council made key purchases, including:

• £5.6 million spent on 44 homes at the Risborough Barracks site,

• The acquisition of 14 affordable homes at Radnor Park, and

• A further 9 affordable homes purchased at Shepway Close.

These acquisitions added a further 67 units, bringing the six-year total of new or purchased affordable homes to 202. But campaigners argue that this still falls far short of what’s needed to reverse the district’s housing crisis.

A Housing System Under Pressure

Temporary accommodation, once considered a last resort, is fast becoming the norm. Experts warn this reflects structural failure, not short-term volatility. The key pressures driving demand include:

• Private rent inflation outstripping Local Housing Allowance rates

• A sharp rise in no-fault evictions via Section 21

• A shortage of council and housing association homes

• Holiday lets and second homes displacing residents

• Steep increases in the cost of emergency housing, especially during peak tourism seasons

A local housing support worker noted:

“We’re seeing families stuck in temporary accommodation for months on end, often in unsafe or unsuitable conditions. The Council’s housing purchases are positive—but nowhere near the scale required.”

A Strain on Core Spending Power

Temporary accommodation is no longer a marginal cost. It is now eating directly into the Council’s operational budget. According to MHCLG data, temporary housing made up 9% of the Council’s total spending power in 2024/25, up from 8.3% the year before. These escalating costs limit the Council’s ability to invest in long-term solutions, such as new social housing or preventative services.

Meanwhile, the national picture is equally stark: over 100,000 households in England are now in temporary accommodation, the highest number on record. Councils across the country are warning that homelessness is no longer just a social emergency—it is a fiscal crisis.

What Must Change

Local housing campaigners, charities, and councillors are urging a complete shift in approach. Key proposals include:

• Accelerating the delivery of new, genuinely affordable and social homes

• Releasing public land for non-profit housing providers

• Strict enforcement of affordable housing quotas in major private developments like Otterpool Park

• Expanding eviction prevention services, including early legal and financial advice

• Regulating short-term lets, which continue to erode local housing supply

A local housing solicitor stressed:

“We are simply not building fast enough. While families wait, emergency accommodation drains public funds and destabilises lives. This is a policy failure, not a market glitch.”

A System at Breaking Point

Folkestone & Hythe’s recent affordable housing acquisitions—while necessary—are far from sufficient. Over six years, the Council has delivered or bought 202 affordable homes, but homelessness has surged and emergency costs have spiralled. The district is now spending close to £1 million per year managing the consequences of inadequate housing supply.

This is no longer a debate about ambition—it is a test of political resolve. The Council’s current path is both financially and morally unsustainable. As temporary accommodation consumes more of the public budget, vulnerable families are shunted between unstable placements, often far from schools, jobs, and support networks.

The choice facing Folkestone & Hythe is stark: deliver a bold, sustained expansion of affordable housing, or continue to pour public money into a preventable crisis. The question is no longer whether the Council can afford to build—it is whether it can afford not to.

If you are in Temporary Accommodation you have rights and Shelter set these out ⇒ here

If you are at risk of homelessness or concerned about losing your home in the future for any reason then you can contact the Council ⇒ here

We would be interested in hearing about your experiences of Fokestone & Hythe District Council. Email: TheShepwayVoxTeam@proton.me in confidence.

The Shepway Vox Team

Journalism for the People NOT the Powerful