Across Europe, homelessness systems still rely on temporary shelters and the outdated “staircase” model – a conditional model that forces people to prove they’re ready for housing. Housing-led approaches reverse this logic – starting with a stable home and providing flexible support. The rise of housing-led models across Europe shows what’s possible when policy backs permanent homes over temporary shelters.

There are estimated 100 million people worldwide experiencing homelessness and numbers are rising.  More people are sleeping rough or living in temporary and emergency accommodation than ever before. In many places, responses still rely on shelters and hostels that are expensive, overcrowded, and often re-traumatise the people they aim to help.

These settings are particularly unsuitable for women and for people facing complex challenges such as trauma, poor mental health, or substance use. Strict rules and time limits often push people back onto the streets.

The so-called “staircase model” – where people are expected to move through a series of temporary stages and prove they are “ready” for housing – keeps people trapped in instability. People are asked to meet conditions such as sobriety or treatment compliance before they can “earn” a home. Evidence shows this approach is short sighted, damaging, and simply manages homelessness rather than ends it.

The Solution: Safe and stable homes

Housing-led approaches turn this logic on its head. Instead of waiting for people to become “housing ready,” they start by providing a safe, stable home—and then offer flexible support to help people sustain it. People are far more likely to rebuild their lives when they have a secure place to live.

The key principle is simple: housing is a human right. Other principles include:

  • Immediate access to stable housing—no readiness tests or preconditions.
  • Voluntary, flexible, person-centred support.
  • Tenancy not dependent on treatment or service use.
  • Choice, control, and dignity at the heart of the approach.

A truly housing-led approach requires more than isolated projects. It means coordinated action across housing, health, and social care—alongside a sufficient supply of affordable homes, clear policy direction, and sustained investment.

Across Europe, there are encouraging examples of systems change:

  • Finland has led the way since 2008, embedding Housing First and housing-led principles into national housing policy. Y-Foundation, a World Habitat Award winner, has been central to this success. Owning over 19,000 homes across 50 cities, it provides permanent housing with tailored support for people with complex needs. Finland now has the lowest homelessness rate in the EU. Finland’s national Housing First programme has cut long-term homelessness by 65% since 2008.
  • From Streets to Homes (Hungary), a World Habitat Award winner in 2020, works in a country where homelessness is criminalised. It renovates vacant municipal buildings into long-term homes and provides ongoing, person-centred support. Its model leveraging the private rented sector has inspired Budapest municipalities to adopt similar housing-led initiatives, proving that rights-based approaches can succeed even in restrictive legal environments. 
  • Scotland has adopted a national Rapid Rehousing approach, requiring all 32 local authorities to help people move quickly from homelessness into settled, mainstream housing. This policy marks a clear shift away from temporary accommodation towards housing-led solutions. Complementing this, Homes for Good – another World Habitat Award winner – has shown how social investment can grow the supply of quality, affordable homes for those on low incomes and provide tenant choice and dignity. Since 2014, it has raised over £20 million to buy, renovate, and manage more than 500 homes in Glasgow and the west of Scotland and this year has opened it’s first service in London with the homelessness charity Crisis. Ninety percent of its tenants are on benefits, arrears are under 2%, and the average tenancy lasts four years.
  • In Central and Eastern Europe, where staircase models still dominate, housing-led innovation is emerging. 2025 World Habitat Award winner STOPA (Slovakia) uses a Housing-led model to provide permanent homes and wrap-around support, including work therapy, skills training, mental health care and community engagement via a peer-led Solidarity Cafe.

The Impact: Long-term security

Evidence from these initiatives—and from national systems built on housing-led principles—shows that this approach:

  • delivers long-term stability
  • reduces public costs
  • rebuilds lives

Ultimately, ending homelessness starts with homes—and the impact is transformative for individuals and society alike.

Takeaways: How to mainstream housing-led approaches:

At the European level, EU policy and funding initiatives are increasingly focussed on housing-led approaches, and this model is seen as a core component of the EU commitment to ending homelessness by 2030 through the European Platform on Combatting Homelessness as well as the EU’s Affordable Housing Plan which frames homelessness as a housing system failure with a clear focus on supporting and scaling housing-led approaches. To make this the norm, governments and partners must:

  • Embed housing-led principles in national policy
    Shift investment from emergency provision to permanent housing
  • Expand affordable housing supply
    Without enough homes, housing-led systems can’t scale
  • Fund long-term, voluntary support
    People should get help for as long as they need it.
  • Listen to lived experience
    Involve tenants and people with experience of homelessness in shaping services.
  • Foster partnerships
    Collaboration across housing, health, and social care is essential.

Housing-led approaches replace the unfairness and inhumanity of conditional systems with compassion and common sense. They start with a home – because when people have a secure place to live and support that fits their needs, homelessness doesn’t just end temporarily – it ends for good.

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