Liverpool City Council is looking to the private rented sector (PRS) to alleviate the cost of temporary accommodation to support families facing homelessness which has risen by an incredible 10,000% in five years. This dramatic increase demonstrates that the demand for property, not just in Liverpool but across the UK, has reached a crisis point.
Spending on temporary accommodation in the city has increased from £250,000 in 2019 to a projected £25m by the end of this financial year.
A report going before the council’s cabinet recommended the procurement of 400 private rented homes for a period of up to five years, with an estimated cost of £19m up to 2029 – a net saving of £121m if current spending trends continue.
Almost 1,000 families in Liverpool currently reside in temporary accommodation, with 558 currently staying in B&Bs and hotels.
The report will be considered on Wednesday, around one week after more than 50 council leaders raised the issue of homelessness and increased temporary accommodation costs at a crisis meeting in Westminster.
Sarah Doyle, cabinet member for housing said: “The homelessness situation in Liverpool is at crisis point. Due to unprecedented external factors, the cost of housing people in temporary accommodation has become unsustainable.
“A 10,000% rise in five years is a frightening number and is creating phenomenal pressure on our overall council budget.”
For the full report please click here Inside Housing - News - Council looks to PRS to save £121m on temporary accommodation
