Councils in England facing bankruptcy as lack of housing pushes up costs

Budgets could be overwhelmed as evictions and rising mortgage rates cause homelessness to surge

England's housing crisis will push many local authorities into bankruptcy as the increasing cost of emergency accommodation for thousands of homeless families threatens to overwhelm council budgets, leaders have warned.

The worst-hit councils are now spending millions of pounds a year - in some cases between a fifth and half of their total available financial resources - to try to cope with an unprecedented and rapid explosion in homelessness caused by rising rents and a shrinking supply of affordable properties.