City council negotiates temporary accommodation rates down by a third as it reduces hotel use

Liverpool City Council also said it has increased the number of self-contained units to 1,330 over the past 18 months, due to “sustained and targeted action to reduce the number of families in hotel accommodation”.

It continued: “This means that hotel use has been reduced to 277 rooms. There are no families in hotel accommodation over six weeks or in the four to six-week timeframe.”

This marks progress since April 2025, when there were 83 households in B&B accommodation for more than six weeks.

There has been “unprecedented demand” on the homelessness service in recent years, the council said, with approximately 1,600 households in interim or temporary accommodation as of last week.

This increased demand is down to a “substantial increase in no-fault evictions, family breakdowns and affordability concerns as rents increase and Local Housing Allowance stays far below market rents”, the report said.

Liverpool City Council’s latest report said expenditure on nightly rate TA in the financial year 2025-26 to the end of December was £23m.

The council has previously said it expects to spend £28.4m by the end of the current financial year, which is a rise of more than 11,000% on the cost of this housing from 2019, when the council spent £250,000.

The council envisions that as its procurement of 1,500 units progresses, reliance on the Perk UK booking service will decrease.

Its proposed contract is for two years at £40m, with the option to extend by two years.

Alongside these self-contained units, the council is also looking to secure “permanent private rented sector move-on provision”.

Last year, councillors agreed to procure houses in multiple occupation and studios from private landlords in a bid to reduce the number of people staying in hotels.

Hetty Wood, cabinet member for housing, said that there has been a “huge increase in people needing temporary accommodation”, as a result of the cost of living crisis.

She added: “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.”