PEOPLE in Edinburgh who have already spent years in temporary accommodation as they wait for a permanent home may have to wait even longer, as allocations for council housing are set to face further delays.
The City of Edinburgh Council suspended new applications for permanent accommodation last year in an effort to manage rising numbers of homeless households amid the city’s ongoing housing emergency.
Under this suspension, applications for temporary accommodation are prioritised over those seeking permanent homes.
Following a decision of the Housing, Homelessness and Fair Work Committee today, this policy will remain in place until at least March next year, by which time councillors hope to have drafted a new housing policy that can more effectively manage both temporary and permanent housing needs.
A report presented ahead of the meeting described a 10% rise in temporary accommodation applications and set out several options, including extending the suspension until May.
While the suspension has increased the supply of temporary accommodation, the number of people successfully moving out of temporary housing has fallen since 2024, even as applications continue to rise.
In December 2025 alone, there were 646 instances where the council failed to provide temporary accommodation, affecting 222 households.
This meant the council was unable to accommodate nearly 60% of people seeking temporary housing that month.
Despite escalating demand and severe pressure on services, the council is forecast to leave around £2.95m of its housing budget unspent.
This underspend will be rolled into a new £6m contingency fund for “demand-led homelessness pressures in 2026/27 and future years”.
While councillors agreed to extend the suspension, they also considered an alternative option: beginning public consultation on a new allocations policy immediately.
The SNP Group, however, opposed both the extension and the immediate start of a consultation.
They argued that continuing the suspension represented a policy that had “demonstrably failed”.
Councillor Danny Aston of the SNP said: “What the SNP Group is putting forward here is neither of the two supposed options we’re being told are available, which we see as a false dichotomy.
“We acknowledge that the suspension will need to continue until May, but I would say to those voting against our position that you are committing to a demonstrably failed approach.
“We’ve said time and time again that something different must be done in the short term to bridge the gap to what are, admittedly, promising medium? and long-term plans.
“But the response has always been that the only route is to continue suspending allocations, and I don’t believe that is acceptable.”
The Green Group rejected this idea and supported the extension, calling it a “difficult” but necessary decision, taken only after extensive scrutiny.
The continuation of the suspension means temporary accommodation applications will remain prioritised.
One Edinburgh resident told councillors she has spent seven years living in temporary accommodation.
Another said the word “temporary” had lost all meaning for her and her children.
Councillors expressed sympathy for those living in overcrowded or unsuitable housing and waiting for direct lets but stressed that the scale of demand had left them with few choices.
The Housing, Homelessness and Fair Work Convener said: “I have every sympathy with an overcrowded household, and I want them to know this service will continue to support them as much as possible.
“But ultimately, we do not have enough properties to meet all the needs in front of us, and we have to prioritise even beyond what the current policy already does.
“I come down on the side of that household that has been told there is nothing for them today.”
A recent meeting with Unison, the trade union, also highlighted serious concerns for housing officers, who reported high stress levels, overwhelming caseloads and frequent staff turnover.
Although the council has once again voted to extend the suspension, councillors suggested that an end may be in sight, with a pledge to produce a new interim allocations policy by May.
