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Liverpool City Council has successfully secured a lower average rate for temporary accommodation provided to homeless individuals while also decreasing the number of people placed in hotel rooms. These efforts form part of a broader strategy to manage financial pressures on the council’s temporary housing budget, which currently supports around 1,600 households in interim or temporary living situations.
The demand for such accommodation has risen sharply, reflecting a national trend driven by factors like no-fault evictions, family breakdowns, and rising rent costs that affect affordability. It is important to note that asylum seekers are not included in the council’s housing responsibilities, as they fall under the jurisdiction of the Home Office.
To reduce dependency on costly hotels and cut expenses, the council has expanded the availability of self-contained accommodation. Presently, there are approximately 1,330 units of self-contained housing in the city, with the average nightly cost reduced from £83 to about £57. This shift has contributed to a decline in hotel use, which currently stands at 277 rooms. Furthermore, no families remain in hotels for longer than six weeks—a notable improvement compared to April 25, when 83 households were housed in B&Bs beyond six weeks.
Looking ahead, the council is working on delivering 1,500 additional units of interim, temporary, and permanent accommodation over the next 18 months. This expansion will substantially lessen the reliance on nightly-rate accommodations. In the short term, the Cabinet is being asked to approve a new two-year contract, starting April 1, valued at £40 million, for an accommodation booking system. This system will help manage placements in interim and self-contained housing while the procurement of new units is underway.
Additional initiatives addressing homelessness include the establishment of an on-site support service capable of assisting up to 49 single households with low to medium support needs, the allocation of £7.3 million in grants to encourage private landlords to bring 365 properties back into use, and the creation of a Housing Solutions hub designed to efficiently handle the volume of homeless applications.
Councillor Hetty Wood, Cabinet Member for Housing, acknowledged the significant rise in demand due to recent cost-of-living challenges. She emphasized the council’s commitment to providing sufficient accommodation units to ensure people have stable housing rather than prolonged hotel stays. Councillor Wood also highlighted the success in negotiating lower rates with landlords to ensure taxpayers receive value for their money and noted the council’s broader homelessness action plan, which includes initiatives like repurposing empty homes. She further stressed the importance of increasing affordable housing supply through collaboration with government bodies, the Liverpool City Region Combined Authority, and social landlords to deliver affordable rent and rent-to-buy options
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