Financing housing solutions for the homeless in Europe
Introduction:
The main obstacles to obtaining harmonized data on the number of homeless people in Europe are the definition and measurement methods of homelessness. There is no single definition of homelessness in Europe, with varying definitions across the EU and even the absence of an official definition of homelessness in some member states. Currently, there are twenty EU member states with an official definition. Some countries have a narrower definition, encompassing only users of emergency accommodation and people “sleeping rough”, which describes persons forced to live on the streets. Other countries have broader definitions, including those who are, for example, staying with family and friends or those staying in institutions, such as hospitals or prisons, for a longer period than needed.
How homeless is addressed at the EU level:
While definitions and strategies to prevent and mitigate homelessness vary across Europe, the EU is stepping up efforts to support its member states in addressing the issue. For the past two decades, there have been several declarations by the European Parliament and other EU institutions addressing homelessness. Between 2011 and 2013, the Housing First approach was tested through the Housing First Europe project funded under the EU PROGRESS Programme. The project was implemented in five cities, including Lisbon. In 2017, the EU introduced the European Pillar of Social Rights (EPSR) encompassing 20 key principles. Principle 19 focusses on support for the homeless, including housing and assistance. However, FEANTSA and Foundation Abbé Pierre argue that the launch of the European Platform on Combatting Homelessness (EPOCH) is the first effective collective initiative taken to combat homelessness.
Homelessness financing in Europe:
Funding systems and structures for homelessness services across Europe are complex and varied, posing significant challenges in tracking expenditure and assessing impact. In much of Europe, funding for homelessness is embedded within broader budgets, such as social services, which can result in competition for resources with other areas like elder care, and make it difficult to calculate exact spending on homelessness. Most funding remains directed towards traditional shelter-based models, with only a few countries, like Finland, showing a significant shift towards Housing First strategies. Operational costs for homelessness services vary widely across countries, complicating comparisons of spending and effectiveness.
Homelessness policies and funding structures in Portugal:
Homeless people remains a major issue in Portugal, with 10,773 people reported as homeless as of 31 December 2022, marking a 19% increase from the previous year. The highest rates are in Alentejo, Lisbon Metropolitan Area, and Algarve. Updated counting methods in 2022, which involved all municipalities for the first time, likely contributed to the reported rise, according to Henrique Joaquim, the coordinator of ENIPSSA. Key factors exacerbating homelessness include rising housing prices, pressure from the tourism sector, particularly the temporary rental market, and increasing migration to Portugal. Between 2017 and 2023, housing prices increased by 47.6%, while demand, fueled by tourism and migration, has surged. Portugal launched its first Housing First project, Casas Primeiro, in 2009 to test the methodology, and the central government introduced its first National Strategy for the Integration of Homeless People 2009-2015. This was followed by a revised strategy in 2017.
Homelessness policies and funding structures in France:
As in many other European countries, the number of homeless people in France has continued to rise over the last two decades, doubling between 2001 and 2012, reaching 141,500 in 2012, and further increasing to 209,074 in 2021. Despite the methodological shortcomings associated with the registration of homeless numbers, the trend is clear. Recent counts in major cities such as Paris and Bordeaux show that this upward trend persists. In response, policymakers have launched initiatives such as the Un chez-soi d’abord (A Home First) pilot project and the first and second national, five-year plans for Housing First and for Combating Homelessness.
Conclusion:
Tackling homeless people requires comprehensive and sustainable solutions to support the most vulnerable people in our society and offer them a way out of homelessness. Housing-led approaches, such as the well-known Housing First model, have proven effective in reducing homeless. Research shows that while these approaches are more cost-effective in the long term compared to emergency or short-term solutions, they demand significant upfront investment. This is largely because tenants typically do not pay rent directly, instead, it is covered by the implementing organizations. Therefore, this paper looks at the financing models of housing-led solutions in two countries, Portugal and France, with the aim of raising awareness about how different actors in the sector can engage and facilitate successful project implementation through adequate financing.
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