The concerns have been raised by the Local Government Homelessness Commission (LGHC), which has published its first assessment of how councils are fulfilling their obligation to prevent homelessness since it was set up a year ago to investigate the issue.
The LGHC says that funding provided to councils from central government is "piecemeal, inadequate and does not provide a sustainable or certain source of funding" for strategic planning in local government.
"Instead councils have to bid for small pots of money, tap in to limited and depleted pools of resource in other departments and generally work on a shoestring."
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