More than 1,600 households are currently living in temporary accommodation across Liverpool, with some families placed outside city boundaries when suitable local options cannot safely be provided.
Rising evictions before last year’s Renters Rights Bill, combined with affordability problems and family breakdowns, have steadily increased demand for emergency housing assistance across the council’s services.
Officials say homelessness now represents one of the largest financial pressures facing the authority, with approximately £23 million allocated toward temporary accommodation provision by December last year.
New Contract To Increase Housing Supply
To reduce long stays in short-term accommodation, Liverpool Council plans to award a contract to Perk UK Ltd initially worth £40 million over two years, potentially reaching £90 million across four years.
The arrangement will deliver both self-contained units and hotel placements, allowing more flexibility for households needing immediate shelter while awaiting permanent housing arrangements throughout the city region.
Mobilisation of the new housing contract is expected to begin in April 2026, with around 1,500 units projected to become available within approximately eighteen months.
Fewer Hotel Stays But Ongoing Need
Council data shows self-contained accommodation rates have dropped to roughly £57 per night as available units increased beyond 1,300 properties across Liverpool’s temporary housing network.
Hotel usage has fallen to 277 rooms, and no families currently remain in hotels longer than six weeks, according to the authority’s most recent operational update.
Three families placed under emergency arrangements have stayed in hotels less than two weeks and are expected to move into self-contained housing shortly where appropriate.
Officials nevertheless accept some reliance on hotels and bed-and-breakfast accommodation will remain unavoidable during peak demand periods or complex safeguarding situations requiring rapid placements.
Wider Housing Strategy And Political Response
Councillor Hetty Wood 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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