Why homelessness is rising in Finland – and what Britain can learn

Homelessness rose for the first time in over a decade in Finland last year. 

When the news broke in February it made global headlines. Such is the success the country has had in tackling homelessness over the past four decades. 

That’s why Big Issue headed to Helsinki recently: to find out why progress had slowed in Finland. 

It’s a well-worn path: British leaders have made a pilgrimage to Finland to learn how the Finns have managed to solve a social problem that no other country has been able to lay a glove on. 

Housing secretaries such as Sajid Javid have been there over the last decade as has Greater Manchester mayor Andy Burnham, who has taken such inspiration from the Finnish Housing First model that he has adopted the philosophy. 

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Big Issue’s trip took us to meet Juha Kahila, head of international affairs at Y-Säätiö, the housing association that leads on Housing First and tackling homelessness. 

And his outlook, considering Finland’s homelessness success story, was a gloomy one. 

Why has homelessness risen in Finland 

A total of 3,806 people are experiencing homelessness in Finland, with just over 1,000 homeless over a long period of time. 

The increase in homelessness recorded last year – showing a rise of 377 people – is only the sixth time numbers have gone up since 1987. 

By contrast, the news of increasing homelessness in the UK has become so normalised that it is barely met with a shrug. 

Kahila tells Big Issue that the reason behind the increase is one that might be familiar to Brits: it comes down to a reduction in housing benefit. 

“I think in the past two or three years, we have been seeing a lot more discussions in Finland as well that we should just let the market take care of the housing, let the market decide,” said Kahila. 

“I always have the one question: can you please provide me with one country where the market has provided affordable housing and where the number of homeless people hasn’t gone through the roof? 

“The answer is always silence because there is no such country unfortunately.” 

Kahila believes it may take until 2028 or 2029 before homelessness numbers start to fall again in Finland. 

It’s a timely reminder that prevention and a functioning safety net are key to halting homelessness. 

The ambition has also shifted in Finland. The previous government, which was led by prime minister Sanna Marin, targeted an end to homelessness by 2027. Now the current government, under the National Coalition Party’s Petteri Orpo, is now targeting an end to long-term homelessness instead. 

In fact, Finland’s success in tackling homelessness has been so dramatic that complacency is as much of a threat as anything else. 

“I have been a little bit worried about Housing First,” said Kahila. “We have been shouting that Housing First will end homelessness since 2015 and all the public can see is the rising numbers in street homelessness and other forms of homelessness. 

“So I think at some point we need to adjust the message a little bit, or at least be sure that we can make that change visible for the public as well.” 

Read more:

• Housing First promised to be a silver bullet to solve homelessness. Why are we still waiting?  
• Homelessness minister ‘shocked’ at number of children in temporary accommodation and B&Bs
• This is why we can’t compare ourselves to Finland when it comes to homelessness

What Finland has got right on homelessness 

Finland’s push to end homelessness has been long running. It began in the 1980s when 20,000 people were experiencing homelessness in the country as a bid to prevent people dying on the streets. 

It was 2008 that saw the shift to Housing First, which was actually devised in the US back in the 90s. But there were no pilots, no tests, no trials, just a fully fledged systems-wide change. 

No homeless shelters have been built since 2008 and the existing ones have been turned into apartments as the Finns ramped up building state-subsidised affordable homes. 

These homes are deliberately targeted for people facing homelessness but they are not huddled together, creating ghettoes on the outskirts of towns and cities. These homes are mixed in with the luxury flats. 

“It’s a good way to battle against segregation when you actually have different kinds of people with different income levels sharing the same living areas as well,” said Kahila. 

“We have always believed that it doesn’t matter what your background or income level is, but you should be able to share the same living areas as anyone else and that’s one of the reasons why I think Finland has been the happiest country eight years in a row. 

“I think there is this kind of common trust between people as well. And I think that common trust you can only build when you actually live together with different kinds of people as well.” 

Kahila gave the example of the Jallukka Rock House on the Helsinki island of Jätkäsaari. Built in co-operation with the Living Music Association, the 74 apartments include 25 homes reserved for rock musicians alongside people experiencing homelessness. That sees a mix of people sharing rehearsal spaces, a small recording studio and sauna alongside their homes. 

Work has also been an important part of Finland’s response to homelessness. 

People housed in apartment buildings are often given the option to undertake paid, voluntary work maintaining buildings while Kahila said that the national post office and IKEA also form partnerships with Y-Säätiö to boost employment. 

Differences between the UK and Finland 

Tackling homelessness in the UK is not the same challenge as Finland. 

With a population of 5.6 million, Finland has a population a tenth of England and 12 times smaller than the 68.3 million people living in the UK. 

The Nordic country is remote by comparison and has a better ratio of social housing among the population. 

Y-Säätiö, the fourth largest landlord in the country and the housing association tasked with developing homes targeting people experiencing homelessness, has 19,000 flats in its portfolio, which is proportionate to the scale of the country’s homelessness population. 

It’s a far cry from Britain where councils are under pressure to find accommodation for a growing number of people experiencing homelessness. 

That also means that Housing First is broader in its scope in Finland. 

In the UK, Housing First is widely used to help the most vulnerable rough sleepers off the streets. In Finland, the approach is more holistic: anyone experiencing homelessness will be given access to a home whether they have been homeless for a day or a year. 

Social housing is the bedrock of that approach. 

“We have always believed that social housing is necessary social infrastructure,” said Kahila. 

“I think the UK is – well, it’s not a pleasant thing to say – but I think you are a prime example of what can happen when the state stops building affordable housing.  

“The inequality, it starts to grow. You see hundreds of thousands of people in temporary accommodation, shelters and so forth. Even if you would start building more affordable housing today, it will take quite many years and decades before you get where you were in the 80s. And the funny thing is that in the 80s, you actually built a lot more compared to us.” 

Why Finland shows political will is key 

Finland first started reducing homelessness in the 1980s, largely as a response to deaths on the streets in the Nordic country’s cold climate. 

But it was in 2008, as the world reeled from the economic crisis, that Finland really accelerated its adoption of the Housing First model and a holistic approach to tackling long-term homelessness. 

But it wasn’t a story of charities, campaigners and third-sector organisations finally convincing the government to take action. 

Instead it was the government that took charge and it was the centre-right National Coalition Party behind it.  

Jan Vapaavuori, the Finnish housing minister at the time, is credited with spearheading the move, threatening to defund organisations who did not get on board with delivering it. 

“That was the stick and carrot,” said Kahila. “I think you need to have strong politicians who are not afraid to use their power. And that’s exactly what he did. Just recently, there was a big article in Helsingin Sanomat about Jan Vapaavouri because he resigned from politics. One question was what has been the biggest achievement for him? He mentioned Housing First for sure. So I’m really happy about that.” 

Vapaavouri recognised that, as well as the social benefits of tackling homelessness, there were financial ones too. Kahila said that within the first 12 years of Housing First in Finland, around €310 million was spent but there were savings of €350m. 

Each person prevented from falling into homelessness in the country saves the taxpayer around €15,000 a year, he added. It’s a message that politicians in the UK should heed. 

With Labour floundering in the polls and Reform rising, the possibility of Nigel Farage in Number 10 becomes ever likely. 

And it might fall to the right to take a stand on homelessness. They could learn from what the Finnish started. 

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