The government has announced an £84 million injection to tackle homelessness.

But is it enough?

The investment, from the Ministry of Housing, Communities and Local Government, includes:

• £70 million for the Rough Sleeping Prevention and Recovery Grant to help 62 local authorities strengthen local support, provide sustainable accommodation, and deliver specialist mental health and addiction services.
• £11 million for 61 areas with high numbers of families in temporary accommodation to cover essentials such as food, school transport, laundry, Wi-Fi, and uniforms.
• £3 million for drug and alcohol treatment support, targeting people at risk of homelessness or rough sleeping.
• £200,000 for voluntary and community-led initiatives such as night shelters.

Resonance welcomes the announcement, but much more funding and strategic action are needed to address the homelessness crisis. Currently, a record 123,000 households, including 159,000 children, are living in temporary accommodation. Moving people out of temporary accommodation and into longer-term homes makes sense from both a financial and societal perspective. This is where targeted government investment could really make a difference.

Whilst the £84 million investment is a positive step that will provide vital support to people at risk of or experiencing homelessness, it must complement a government strategy that includes sustainable solutions such as:

• Long-term investment in genuinely affordable settled housing, not additional temporary accommodation.
• Stronger support for social enterprises and community organisations that help people move on from homelessness for good.
• A focus not just on emergency measures but also on prevention, ensuring people have access to stable homes, employment opportunities and wraparound support that break the cycle of homelessness.

Our housing partners agree.

Rosie Phillips, CEO of Developing Health and Independence (DHI), one of Resonance’s housing partners, said: “We welcome this vital injection of funding, especially as winter approaches and pressures on families and frontline services such as ours intensify. But the scale of homelessness demands more than short-term relief – it requires long-term investment and sustained focus from the government. Without that, we risk continuing to treat symptoms rather than solving the crisis.”

DHI provides safe homes for people like Adele, thanks to investment from Resonance’s National Homelessness Property Fund 1 (NHPF1). Adele experienced spells living in temporary and emergency accommodation with her two young children, after fleeing an abusive relationship. After being placed in a hostel then a small noisy flat, earlier this year Resonance and DHI moved Adele and her children into a new flat in Bristol, close to school, a bus stop and a shop. She said: “Now I feel I have freedom and my children are no longer at risk.”

Adele’s story shows the human and societal benefits of investing in life-changing homes for real people – a local initiative that could scale to national level.

Adele is just one of thousands of people in crisis benefitting from social impact investment in property.

Lee was affected by a period of poor mental health, which led him to become homeless - sofa surfing then entering the hostel system. Having a place to call home allowed him to rebuild his life, saying: “I feel safe here.”

Another of Resonance’s partners, Redwing, used funding from the National Homelessness Property Fund 2 (NHPF2) to provide Lee with a stable home in Liverpool.

Michelle Brooks, Director of Operations at Redwing said: “We welcome this vital funding, which will provide much-needed support to people facing homelessness - especially as winter approaches.

“We believe everyone deserves a safe, secure place to call home, and through our partnership with Resonance and the National Homelessness Property Fund 2, we’re helping to create homes that offer not just shelter, but stability, dignity, and hope. This funding is a positive step forward - and with continued investment and collaboration, we will be closer to a future where homelessness is rare, brief, and never repeated.”

Resonance is working with many housing partners, charities, foundations and pension funds to invest in settled housing for individuals and families living in temporary accommodation. But our work cannot be the only solution. While the £84 million investment is a positive step that will provide vital support to people at risk of or experiencing homelessness, it must complement a government strategy that includes sustainable solutions such as:

• Long-term investment in genuinely affordable settled housing.
• Stronger support for social enterprises and community organisations that help people move on from homelessness for good.
• A focus not just on emergency measures but also on prevention, ensuring people have access to stable homes, employment opportunities and wraparound support to break the cycle of homelessness.

The government funding will be targeted toward areas under the greatest pressure, including London, the South East, and the South West.

Ending homelessness requires more than short-term funding — it needs a clear, sustained commitment to tackling its root causes. The £84 million announced by the government is a welcome start, but it must be matched with long-term investment in affordable housing, prevention, and community support.

At Resonance, we will continue working with housing partners, investors, and local organisations to create stable homes and lasting change. But to truly end homelessness, government, business, and society must come together to ensure that everyone has a safe and secure place to call home.