A politician has expressed concern that Liverpool City Council is set lose millions of pounds on a home refurbishment project.
The council has spent millions of pounds on refurbishing 25 terraced houses on Tunstall Street in south Liverpool. The procurement process to refurbish the terraced homes was awarded to local builders The Flanagan Group.
Over the last six months the council has paid for full time security guards to patrol the site, which is just off Smithdown Road. Details of the cost are now available but the ECHO understands security of this type can cost up to £10,000 per month.
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There is now growing concern about the cost associated with the scheme. A council spokesman said the project was going before the Mayor and cabinet in the coming weeks.
According to Land Registry documents Liverpool Council paid £445,250 for six homes in Tunstall Street which represents an average price of £74,000. Price information for the other 19 homes is not available.
A cabinet report from February 2020 by then council officer Darren Hardy agreed to increase the budget for the scheme to £4.4m. However the ECHO understands that the total spend , allowing for the cost of procurement and security, could now be around £5m.
The report granted the transfer of £830,000 from an existing Picton Housing Capital scheme and the use of £1.24m of funding from the Strategic Housing Development Fund
Richard Kemp, leader of the city's Liberal Democrats, said: "The news that up to £250,000 has been spent on refurbishing each of these small terraced homes is a major blunder.
"Given that the council already owned the houses through another failed regeneration scheme it could actually have knocked these houses down and completely rebuilt them for about £150,000 each.
"If the council sells these houses it will incur a loss. If it keeps them for social housing the rents will not cover the capital costs never mind the running costs.
"Yet again the council has shown itself totally incapable of procuring price advantageous contracts and the taxpayers of Liverpool will, once again, have to pick up the tab for Labour incompetence."
A Liverpool man who asked not be named said: "I can't believe the amount of money spent on refurbishing terraced homes off Smithdown.
"There are issues in this post code and I wonder what the council will be able to sell the homes for. I think the very most they might get is around £70k which will represent a massive loss for the city."
On the Flanagan Group website, the company says of the scheme: "Tunstall Street is a row of Victorian terraced properties facing the new Archbishop Blanche School off Smithdown Road, Liverpool.
"The street was acquired by Liverpool City Council as part of the 'Housing Market Renewal Initiative' with the intention of including the street in a wider demolition and new build programme.
"However, the removal of the HMRI funding and a subsequent change in Government policy has made this aspiration unachievable. After the withdrawal of funding, the houses have stood empty for a number of years.
"The 25 remaining 3 bedroom properties have been excluded from the neighbouring Homes for £1 scheme due to both the level of intensive work required and the challenging nature of on-street parking in the street, which fronts on to the new Archbishop Blanch school and is a significant through route for school traffic.
"The condition of the properties have deteriorated further over the winter and emergency works were secured in order to ensure against further demolition.
"The Council have undertaken an assessment of the site and the refurbishment was the most economic effective model over demolition and rebuild.
"The Flanagan Group took possession of the site in 2018 and have commenced works as instructed."
A spokesperson for Liverpool City Council said: “Options on the future of the Tunstall Street properties are in the process of being assessed and will be put to the Mayor and Cabinet in the coming weeks. All costs relating to the security of the properties are currently budgeted for.”
