A huge increase in the use of temporary housing for homeless people has exposed the desperate shortage of homes to rent, according to leading housing charity, Shelter Scotland.

Commenting on the Scottish Government’s annual homelessness statistics released today, Shelter Scotland congratulated local authorities on the good progress they have made towards the internationally acclaimed commitment to house all homeless people by 2012.

However, the housing charity argues, this is mainly because many more people are being stacked up in temporary housing while the supply of permanent homes declines.

Shelter Scotland estimates that use of temporary housing is costing at least £70m a year – money which it says would be much better spent providing new homes, by making this year's budget a "Budget for Homes".

Today’s figures show a huge 160% rise in the number of households in temporary accommodation, the highest in the ten years of the Scottish Parliament. They show an increase from 3,864 in March 1999 to 10,053 in March 2009 - including 3,825 households with children or pregnant women.

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Speaking today, Graeme Brown, Director of Shelter Scotland, the housing and homelessness charity, said: "Scottish councils should be congratulated for the good progress they have made towards the 2012 commitment to give everyone in Scotland the right to a home.

"Whilst some councils who have historically high levels of homelessness face continuing challenges, today’s statistics show that Scotland’s internationally acclaimed homeless legislation can and will be delivered.

"However, this should not mask the fact that there are thousands who are stuck in temporary accommodation. The responsibility being placed on local authorities is not being matched by progress on building the 10,000 new affordable homes to rent that Scotland needs."

The 2009 interim target figures come just a month before Shelter Scotland hosts a major conference on 'Delivering 2012', which will bring together leading speakers, including Alex Neil, Minister for Housing and Communities, in Glasgow .

The charity this week submitted its case for more homes through the budget to Finance Secretary John Swinney. The Building Solutions submission argues that £200m extra a year would help build the 10,000 affordable rented homes a year that housing experts agree are desperately needed.

The submission comes as part of the charity’s campaign, Countdown to 2012, which is building support for more homes for Scotland. Events have been held in Blairgowrie, East Lothian, Shetland, and Inverurie, with a visit to East Kilbride today and a planned visit to Glasgow.

(GK/BMcc)