North Yorkshire Council is proposing to invest £18 million in temporary accommodation as the number of households needing emergency housing continues to rise.
The authority wants to increase its programme of new temporary homes by almost 25 per cent, from the 90 properties originally planned to 112.
Council bosses say the additional accommodation could ultimately save up to £2.7 million a year by reducing reliance on more expensive hotels and bed and breakfasts.
The proposals will be considered by the council’s executive when it meets on Tuesday, September 15.
Demand for temporary accommodation has risen sharply in North Yorkshire, with spending on emergency housing increasing by more than 400 per cent since 2019/20.
Expenditure stood at just over £500,000 in 2019/20 before rising to more than £2.1 million in 2022/23.
The council currently has access to 191 purpose-built and converted temporary accommodation units, some of which are owned and managed by the authority.
It has also delivered 20 new temporary homes, while another 40 properties are undergoing improvement work before being brought into use.
However, officials say accommodation is not evenly distributed across the county and there is a particular shortage of smaller one and two-bedroom properties.
The problem reflects a national increase in homelessness pressures. More than 132,000 households were living in temporary accommodation in England in June 2025, according to figures cited by the council.
Cllr Simon Myers, North Yorkshire Council’s executive member for housing, said: “The demand for homelessness support and temporary accommodation has increased significantly in recent years, and we are seeing a growing need for smaller one-bedroom homes.
“We have already made strong progress as part of a proactive approach to delivering new temporary accommodation across North Yorkshire.”
He said increasing the programme would provide more appropriate accommodation for vulnerable households while reducing reliance on hotels and B&Bs, which came at a “significant cost to the taxpayer”.
The investment forms part of North Yorkshire’s first homelessness and rough sleeping strategy, adopted last year.
If approved, the expanded programme would see 112 temporary homes delivered across North Yorkshire.
The council says the properties would not only provide more suitable accommodation for people facing homelessness but reduce the amount it spends buying emergency accommodation from private providers.
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