Communities and Local Government has announced a 20 per cent fall in the number of new cases of homelessness from October to December, compared to the corresponding period of 2005.

In the last three months of 2006, 17,310 households were rendered homeless. This compares to three years ago, when 35,770 new cases of homelessness were recorded nationally in the fourth quarter.

For the first time since 2003, the number of households living in temporary accommodation has also fallen below the 90,000 threshold, with 89,510 housed in provisional lodgings from October to December 2006.

"We have successfully reduced rough sleeping by more than two-thirds and families with children no longer live long-term in bed and breakfast hostels," said housing minister Yvette Cooper, commenting on the statistics.

"Despite today’s housing pressures this new figures show that we are seeing real achievements in tackling and preventing homelessness.

"But we now face new challenges and need new solutions," she concluded.

The government has committed £300 million to homelessness protection services, through to the end of next year. Local authorities will receive £47.2 million in homelessness grants this year and voluntary organisations conducting homeless prevention work will see £16 million in 2007.