More than 23,000 children are now growing up in temporary accommodation across England's county and rural areas, according to new analysis from the County Councils Network, as local authorities warn that homelessness is becoming an increasingly severe challenge beyond the nation's major cities.
The figures reveal a sharp rise in families being housed in bed and breakfasts, hostels and costly nightly-paid accommodation, highlighting what county leaders describe as a growing rural homelessness crisis that is placing unprecedented pressure on council finances.
The analysis comes as the government recently announced the first £10 billion tranche of its Social and Affordable Homes Programme, aimed at reducing the number of families living in temporary accommodation. However, county leaders argue that the overwhelming majority of the funding has been directed towards England's major urban centres, despite escalating demand across rural communities.
With Prime Minister Andy Burnham pledging to end rough sleeping, the CCN is urging ministers to recognise that rising homelessness in county and rural areas now requires the same level of attention afforded to cities.
According to the latest data, a record 23,186 children were living in temporary accommodation across county and rural areas in March 2026. This represents a 74% increase since March 2020, almost double the national rise of 38% and significantly higher than London's increase of 15%.
The number of households placed in temporary accommodation has also reached an all-time high. In March 2026, 22,230 households were living in temporary accommodation across county areas, an increase of nearly 80% over six years. This exceeds the national increase of 48% and is almost three times higher than the growth recorded in London.
County councils say rising demand is being driven by sustained cost-of-living pressures, soaring private rents and a shortage of affordable homes, particularly in rural communities where housing supply remains constrained.
Alongside rising demand, councils are facing rapidly escalating costs.
Spending on temporary accommodation in county areas has increased from £124 million in 2019/20 to £373 million in 2024/25, representing a 201% increase over six years.
Nearly one-quarter (24%) of households in temporary accommodation are now being housed in expensive nightly-paid accommodation, up from 17% in 2020. Councils say this reflects diminishing availability of alternative housing options.
Homelessness pressures are also rising more broadly. During 2025/26, 116,734 households were assessed as homeless across county areas, compared with 108,627 in 2019/20. Over the same period, homelessness budgets increased from £161 million to £447 million.
Meanwhile, rough sleeping has reached its highest level on record in county and rural areas. In autumn 2025, 1,821 people were recorded sleeping rough across counties, accounting for 37% of England's total rough sleeping population.
Councils warn that while they can recover some temporary accommodation costs from government, the subsidy system remains based on Local Authority Housing Allowance rates fixed in 2011.
As accommodation costs have risen significantly over the past decade, local authorities have increasingly been required to meet funding shortfalls from already stretched council budgets.
The CCN has repeatedly called for reforms to the subsidy system, arguing that the current arrangements fail to reflect the true cost of providing temporary accommodation and place unsustainable financial burdens on councils.
County leaders say any future national strategy to tackle homelessness and rough sleeping must fully acknowledge the unique challenges facing rural and county areas.
Councils are calling for homelessness funding to better reflect local demand and for rural homelessness to become a central component of government policy.
Cllr Andrew Husband, Housing and Planning Spokesperson for the CCN, said:
"More than 23,000 children are now growing up in temporary accommodation across England's counties. That’s enough young people to fill an average sized market town in accommodation that was never designed to be home.
“Homelessness is no longer just a big city issue – it is now a deepening crisis in rural areas. I see it first hand in my own large rural county of Durham. Across England's counties record numbers of families are now in temporary accommodation. County and rural unitary councils work tirelessly to support residents at risk of homelessness, but demand is rising far faster than funding and is placing enormous pressure on local budgets.
“If the government is serious about ending homelessness the thousands of people housed in temporary accommodation, they must recognise this is no longer just a city problem. Rural England needs the same attention, investment and, ultimately, a long-term solution.”
The findings coincide with the launch of a new joint project between the CCN and Newton, which aims to examine the causes of rising rural homelessness and the expanding use of temporary accommodation.
The study will provide detailed analysis of costs, future demand projections and opportunities for councils to adopt more preventative approaches. It will also explore how government policy could better support county and rural authorities to intervene earlier and reduce homelessness before households reach crisis point.
As homelessness pressures continue to spread beyond England's major urban centres, county leaders are warning that rural communities can no longer be overlooked in the national debate.
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