Finland tried to end homelessness. What can we learn from its runaway success – and recent failures?

Source: Guardian Housing ↗

Finland tried to end homelessness. What can we learn from its runaway success – and recent failures?

The Housing First policy led to the number of homeless people in Finland dropping by half. Those with firsthand experience explain why it worked A t 3.30am, Vello Senkel awoke to a knock on his door. Standing on his doorstep were his neighbours with an urgent request: “Do you have salt? We want to boil macaroni.” He acquiesced, but it turned out that salt wasn’t the only ingredient they were missing: “And do you also have macaroni?” His warm face, framed by jaw-length white hair, is at once charmed and outraged as he recounts the interaction while smoking a cigarette outside his apartment building the following morning. Senkel, whose nickname is Velho (Finnish for wizard), is known for his proficiency in the kitchen. In his apartment, where he lives alongside 77 other formerly homeless people in a Helsinki suburb, he shows me his fully stocked freezer. From his neatly organised fridge he pulls out the jars of pickled cabbage and shrimp salad he has prepared to take to a friend’s house for lunch later. When Senkel, 67, moved here three and a half years ago, he had been living on the streets of the Finnish capital for 10 days after being evicted from his home. Before that there had been a diagnosis of borderline personality disorder, and a devastating loss. His partner, whose photo is framed on his bookshelf, died after two years in a coma that started when her heart failed in her sleep. After getting a place here, little by little, he started to build a new life. As well as cooking, he likes to play a bit of guitar every day. He brings his bass into the kitchen and becomes emotional as he plays along to an Estonian power ballad (he is originally from Estonia). Having this apartment, he says, has “changed everything”.

The housing unit, attractively set around a courtyard in converted student accommodation, follows the “Housing First” principle that has made Finland a world leader when it comes to tackling homelessness. The model focuses on housing as a fundamental human right rather than a reward. Temporary accommodation is seen not as a solution, but something to be avoided. All support is centred on ensuring that people have permanent homes, with everything else following from that – treatment, healthcare, employment. In the long run, advocates say, it is cheaper for the state for people to be permanently housed, taking pressure off other public services. Another key component of Housing First for Senkel is the 24-hour staff support. Without it, his home would have been a “black hole” of loneliness. He feels understood by the staff here, he says. He has an agreement with the management that if they don’t see him for 72 hours they will get in touch. Marko Lahtela, who manages the unit where Senkel lives, says their tenants come to them from a range of homeless situations: some come directly from the street; others may have been evicted from their apartment or had problems paying rent. While housing is essential, it is by no means an instant fix. Many have substance-abuse issues or other long-term problems, which means building trust is vital. It is “more of a marathon than a sprint”, he says. There is no limit on how long you can live here.

Some haven’t left since it opened in 2022; others move on to more independent forms of accommodation after just six months. Tenants range in age from early 20s to 60s, but the most common demographic is men who are about 40. There are two apartments for married couples, but the rest are single-person homes. Usually people cover the rent, which starts at about €850 (£728) a month, using benefits or, for those who have one, a pension. The unit, which is run by the health and social care provider Rinnekodit, has lots of success stories, but the system is not perfect. Lahtela says there is not enough in place to stop people running into rental debt, which after two months can result in eviction – and for some, a return to the streets. Since 2008, when the Housing First principle was introduced as the foundation of all homelessness policies in Finland, the country has achieved remarkable results. Between 2012 and 2023, homelessness rose across Europe, but in Finland, the number of homeless people dropped by more than half, from about 8,000 to about 3,400. Homelessness statistics are notoriously difficult to measure, but for context, the number of people experiencing homelessness in Spain rose by about a quarter between 2012 and 2022. In December, the charity Shelter reported that homelessness in England had risen 8% in the past year to a total of 382,618 – including a record number in temporary accommodation – and that rough sleeping had increased by 20% in just a year. Finland’s success has drawn attention from politicians from around the world – including Britain’s new prime minister, Andy Burnham. In his first speech as PM, Burnham pledged to end rough sleeping in England, and he recently launched a £442m campaign to “get everyone in for Christmas”. But is Finland still the model?

Sources cited: 📰 Guardian Housing ↗

⚡ Effects Interpreter

🌍World Economylow impact

What this means for you

  • ▶Overseas suppliers could subtly rethink their pricing after news like this.
  • ▶Multinational firms usually adjust their playbooks when stories like this break.

🏙️Local Economylow impact

What this means for you

  • ▶The high street usually mirrors big-picture shifts, just a bit further down the line.
  • ▶Jobs and trade close to home may feel a soft knock-on effect.

🏦Rates & Banksmedium impact

What this means for you

  • ▶The gap between the best and average mortgage deals can widen after this kind of news.
  • ▶Lenders tend to reprice cautiously rather than all at once.

❤️Healthmedium impact

What this means for you

  • ▶Community spirit usually steadies nerves when headlines feel unsettling.
  • ▶It's easy to underestimate how much stories like this weigh on people.

💷Wealthmedium impact

What this means for you

  • ▶Savings and portfolios can see short-lived ups and downs after news like this.
  • ▶Time in the market usually matters more than timing the market around this kind of news.

🏠Housinglow impact

What this means for you

  • ▶The local market usually takes its cue from sentiment as much as data.
  • ▶Local estate agents might see a shift in enquiries as word spreads.

🌍 Effects for your country

The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.

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Editorial note: This analysis was produced by the News Effects Interpreter, an AI editorial tool that cross-references 1 independent news sources and contextualises events in terms of their real-world impact on ordinary people. Original reporting is linked above. News Effects does not alter the facts of source reports.