£90m initiative aims to provide housing for the city’s homeless population

The cost of providing accommodation for homeless people in Liverpool could reach £90m over the coming years, as the city struggles with rising demand for support.

Liverpool City Council says requests for temporary housing have climbed sharply, driven by cost-of-living pressures and an increase in so-called “no-fault evictions,” where tenants can be asked to leave despite not breaking any rules.

Although the authority has succeeded in lowering the nightly price it pays for accommodation, it now plans to hire a private contractor to oversee housing for up to 1,600 homeless families and individuals. Multinational company Perk UK is expected to take on the role under a contract worth roughly £20m annually.

In recent years the council has shifted away from using hotels, expanding its supply of self-contained units instead. The city now has 1,330 such properties, with average nightly costs falling to about £57 from a previous £83. Hotel use has dropped to 277 rooms, and families are no longer staying longer than six weeks before moving into alternative housing.

Housing chief Hetty Wood said the council was pursuing multiple initiatives to ensure people have a safe place to stay while they search for permanent homes.

Nearly 1,200 households across Merseyside have lost their homes through no-fault evictions in the past two years. Nationally, these evictions reached record levels in 2024, making up around half of all notices issued to tenants. The practice - permitted under Section 21 of the Housing Act - is scheduled to be scrapped next year, though it accounted for a smaller share of evictions locally over the past year.

A report due before councillors highlights additional pressures, including family breakdowns, rising rents, and housing benefit levels that lag behind market prices. Economic strain and health issues are also making it harder for residents to secure and maintain tenancies, the report says.

Under current plans, Perk UK Ltd will manage interim and temporary accommodation services for two years in a deal expected to total about £90m.

Meanwhile, city leaders aim to secure 1,500 temporary and permanent homes within the next 18 months, a move they believe will significantly cut reliance on expensive nightly accommodation.

Wood added that boosting the supply of affordable housing remains essential, with the council working alongside government bodies, regional authorities, and housing associations to deliver lower-cost rental and rent-to-buy homes.