Sefton Council plans to spend nearly £1m converting two properties into 13 flats that can be used as temporary accommodation for the borough’s growing number of people at risk of homelessness.
According to a report set to be discussed at a meeting of the council’s cabinet on Thursday, March 9, the cost of housing people coming to the council for emergency support has risen from £17k to £250k in the last four years.
With the 11 units Sefton Council currently has set aside for those in need of temporary accommodation “constantly in use” the council has been increasingly housing people in B&Bs and other nightly pay accommodation, which can prove costly, particularly during the holiday season when rates go up.
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The report states that two properties the council currently owns could be converted into 13 units at a total cost of over £1m – but which could save the council over £200k a year currently being spent on hotels.
The £1m costs would include over £720k spent on construction work, £92k on design team fees and nearly £90k set aside for risk and contingency.
Nearly £48k of revenue costs would also be needed, including over £42k on “premises related expenditure” and £15k on staff and £35k on other costs offset in part by an anticipated income of £44k.
The report details how currently emergency temporary accommodation is funded through a homelessness prevention grant by the Department for Levelling up, Housing and Communities.
Sefton Council is currently receiving around £540k a year from the grant, which is being used across several services to prevent and relieve rough sleeping and homelessness.
However, with costs going up 20% each year in the past four years, the report states the costs are “unsustainable” with an additional concern the grant could change or cease in coming years with the potential for costs having to be met from the council.
The report states that the refurbishment of the two properties the council currently own would be cheaper than buying 13 already-built units outright, which could cost up to £1.7m.
The council is considering options for paying for the scheme which could involve grant funding or borrowing or a combination of the two.
Even if borrowing was required, which would likely cost the council £64k a year over 25 years, the conversion would still be a better option for the council, the report notes, because it gives long-term options that would help offset any future costs the council would have to pick up to ensure temporary accommodation is provided to residents in the borough who have become homeless.
The refurbishment would take 7-9 months according to the report and the project would require planning approval before work could begin.
The report is due to be discussed at a meeting of Sefton Council’s cabinet to take place at Bootle Town Hall at 10am on March 9.
The report includes a timetable for action, if the plans are approved, which could see an update report being brought to cabinet in July.
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