In February, the Regulator highlighted that some councils were finding it increasingly difficult to fully meet their statutory duties on homelessness, particularly providing temporary accommodation to people experiencing homelessness.

The report further highlighted that councils are making considerable efforts in very challenging circumstances to deliver effective services but that there was an emerging risk of systemic failure in their homelessness services.

The statement concludes that this risk has materialised in some councils and that there is now systemic failure in the delivery of homelessness services in some areas of Scotland.

Michael Cameron, chief executive, said: “In February we said that councils faced strategic challenges and a risk of systemic failure in meeting the demand for suitable temporary accommodation and ensuring sufficient access to permanent housing.

“Our statement today follows the Scottish Government’s release of annual homelessness statistics in August 2023, our review of the Annual Assurance Statements submitted to us by all councils by the end of October 2023 and our on-going engagement with councils.

“Our judgement is that the demands on some councils now exceed their capacity to respond and in others it soon will. We therefore take the view that there is systemic failure in the delivery of services to people experiencing homelessness in some local authorities and an immediate risk in others.

“All councils should continue best efforts to respond to the challenges and meet their statutory obligations. We will engage with the councils which we believe are experiencing systemic failure. And we are ready to work with the Scottish Government and other stakeholders to identify and implement actions that will address the acute issues in temporary and permanent accommodation for people who are homeless.”

Shelter Scotland has repeated its call for local authorities and the Scottish Government to declare a housing emergency, backed up with an action plan to end it.

Shelter Scotland director, Alison Watson, added: “When the Scottish Housing Regulator first warned there was a risk of systemic failure in local homelessness services, we said it was a clear signal that the Scottish Government had to act quickly.

“Since then, we’ve seen evidence of social housing delivery slowing to a crawl, record numbers of children trapped in temporary homeless accommodation, and the country’s two largest cities have declared a housing emergency.

“Despite this, the Scottish Government continue to deny there is a housing emergency, and have persisted with a business as usual approach which has, demonstrably, failed.

“Now the regulator’s warning has become reality, some local homelessness services have failed and others are on the brink, we must once again implore the Scottish Government to recognise the housing emergency, commit to taking the kind of emergency action needed, and get on with rapid delivery.

“If ministers don’t then they must accept that they’re choosing to let an already devastating housing emergency get even worse.”