Run by City Mission, Launceston's Safe Space offers overnight accommodation for up to 20 rough sleepers, as well as support during the day including meals and assistance with health issues and housing support.

City Mission chief executive Stephen Brown said the announcement of further funding for the Safe Space service in Launceston, and similar spaces in Burnie and Hobart, was "encouraging and heartwarming".

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"Just to know that there's certainty until June 30, 2022 and we'll be able to continue to develop the service for the benefit of the people is wonderful," Mr Brown said.

"We're open 24/7, so no matter what happens in the city, the other services know we're open.

"There's an opportunity to bring people here so that they can start a journey hopefully to more secure housing and a better hope and future for each one."

Mr Brown said the service had seen an increase in demand since opening.

"For example, last night [Wednesday] we were fully booked," he said.

"At the moment with COVID restrictions and the size of our buildings we have a restriction in what we can do, but in the envelope of funding we can expand so we'll continue to look at that to see if we can increase our space."

Housing Minister Roger Jaensch described the Safe Space program as "vital" to supporting the state's homeless population, and that the government was looking into the future of the initiative.

"Two years is not forever money, but it is certainty for the foreseeable future and we'll continue to monitor demand and need and what the right solutions are going forward, so that by the end of that program we can look forward to another period of funding beyond that," he said.

City Mission is one of four charities supported by The Examiner's Empty Stocking Appeal, which is aiming to raise $80,000.

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