Liverpool Council is awarding a new contract to expand temporary and interim accommodation, aiming to reduce reliance on hotels and support more households locally.
The city of Liverpool is facing a critical housing challenge, with more than 1,600 households currently residing in temporary accommodation. Many of these families are being placed outside the city, highlighting the growing strain on local housing resources. Homelessness has emerged as one of the primary cost pressures on the Liverpool Council, driven by an unprecedented demand on the city's housing solutions service. These pressures are exacerbated by a combination of factors, including increasing family breakdowns and significant affordability concerns.
Furthermore, the absence of no-fault evictions prior to the introduction of the Renters Reform Bill has compounded the difficulties for both tenants and the local authority. As a result of these challenges, the council has seen its expenditure on temporary housing rise significantly. By December of last year, approximately 23 million pounds had been allocated to cover these costs. To address this situation and reduce reliance on temporary solutions, Liverpool Council is proposing a new two-year contract with Perk UK Limited, valued at 40 million pounds.
Depending on performance and requirements, this contract could be extended for an additional two years, potentially increasing the total value to 90 million pounds. Under the proposed terms, the accommodation provided by Perk UK will include both self-contained units and hotel-style housing. The council has already taken steps to manage costs, reducing the average nightly rate for self-contained accommodation to 57 pounds, while simultaneously expanding capacity to over 1,300 units.
Additionally, the use of hotel accommodation has been limited to 277 rooms. The council has noted that, currently, no families are being housed in hotels for longer than six weeks. Moving forward, officials have pledged to maintain rigorous monitoring of these temporary housing solutions. This oversight is intended to ensure that all placements meet necessary safety and quality standards for residents while effectively controlling the city's overall housing expenditure.
