Finland is the only country in the European Union that is not struggling with a crisis of homelessness and housing exclusion, according to a new report published by the European Federation of National Organisations Working with the Homeless (Feantsa).

In Finland, homeless people are given permanent housing as soon as they become homeless.

In an interview with The Guardian, Juha Kaakinen, chief executive of the Y-Foundation, which provides 16,300 low cost flats to homeless people in Finland, said the difference is ending homelessness instead of managing it.

“The basic idea is to offer permanent housing and needs-based support for homeless people instead of temporary accommodation in hostels or in emergency shelters,” he said. “Permanent housing means an independent rental flat with own rental contract.”

Since 2008 the national homelessness strategy in Finland has been based on the Housing First model, as a result of dedicated cooperation between the state, municipalities and NGOs.

“Finland has all but eradicated rough sleeping and sustainably housed a significant number of long-term homeless people. Finland is the only country in Europe where the number of homeless people has declined in recent years,” added Kaakinen.

He explains that tenants pay rent and are entitled to receive housing benefits. Depending on their income, they may contribute to the cost of the services. The rest is covered by the municipalities. They provide the support themselves or buy support from other service providers, mainly from the NGOs.

“Stable living conditions enable the use of mainstream services instead of using expensive emergency services,” said Kaakinen. “This will save money in a long term.”