More than 1,600 households still in temporary accommodation across Liverpool

The city council is to enter into a new contract in a bid to reduce the number of temporary beds needed

More than 1,600 households across Liverpool are in temporary accommodation with some having to be housed outside the city. Homelessness continues to be one of the growing cost pressures facing Liverpool Council, with “unprecedented demand” on the city’s housing solutions service.

With no fault evictions increasing prior to the Renters Rights Bill being introduced last year, family breakdowns and affordability concerns all adding to pressures, the local authority has found itself spending more and more on temporary housing. As of December last year, £23m had been allocated to provisions.

In a bid to get more people out of temporary solutions, Liverpool Council is proposing a contract award to Perk UK Ltd for an initial period of two years worth £40m. This could go up to £90m if extended to four years.

As of last year, there are around 1,600 households in interim and temporary accommodation with some placements made outside of the city when households are not able to be accommodated in the city safely due to specific circumstances. Under new terms agreed with Perk, placements include self-contained units of accommodation and hotel accommodation.

The rates for self contained accommodation have been reduced to an average of £57 a night as the number of units has increased to more than 1,300. According to Liverpool Council, hotel use has been reduced to 277 rooms.

No families are currently in hotel accommodation for more than six weeks. There are three families who have been placed via emergency placement and they have been in hotels for less than two weeks with move on into self-contained temporary accommodation expected imminently and as appropriate.

Under the new contract, mobilisation of interim, temporary and permanent accommodation contracts is anticipated to begin in April 2026.

Delivery of approximately 1,500 units is anticipated to take up to 18 months.

The city council has accepted an ongoing need for B&B/hotel accommodation will remain however.

Councillor Hetty Wood, Liverpool Council cabinet member for housing, said: “The cost-of-living crisis in recent years has led to a huge increase in people needing temporary accommodation. In response to that, we are taking proactive steps through a number of schemes to make sure we have enough units of accommodation to give them a roof over their head while they find somewhere more permanent, rather than spending months in a hotel.

“We have also negotiated reductions with landlords in the rates paid, to make sure that council taxpayers get value-for-money. This is all part of our wider homelessness action plan which includes bringing empty homes back into use for people who are on the housing waiting list.

“We recognise that there also needs to be an increase in the supply of affordable homes and are working with Government agencies, Liverpool City Region Combined Authority and social landlords to deliver affordable rent and rent-to-buy properties.”

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