Warrington’s homeless housing problem as council action proposed

A report prepared for this month’s Warrington Borough Council cabinet meeting proposes action to relieve some of this strain.

It states that the council’s spend on hotel accommodation for those homeless is forecast to be £1.5million.

This is against a budget of £340,000, and although a ‘break even’ position is being achieved by the use of reserves and a carry forward of a grant, the council says this is ‘unsustainable’.

In the year 2022/23, the spend on homeless accommodation was £375,000, rocketing to £1.2million in 2023/24, and the aforementioned £1.5million in 2024/25.

There are 8,000 people on the social housing waiting list, the report states, with 2024/25 homeless applications increasing by 30 per cent, with foreign nationals representing an increase of 66 per cent.

Moreover, 46 families are in hotels, eight of which are out of the borough, and 33 families being in hotel accommodation beyond six weeks.

The report goes on to say that 300 people are awaiting asylum decisions, with the Labour Government’s early prison release scheme, to combat prison overcrowding, presenting a possible impact of 42.

To mitigate the strain, the council is recommending that cabinet members establish a housing fund to buy housing stock, to reduce hotel use and generate rental income.

It also seeks to explore options with private providers for more efficient use of resources, pending the availability of social housing, and to lobby Government for additional funding.

The report states: “In respect of homelessness accommodation, over the past five years, the Homelessness and Housing Advice Service has received between 2,400 and 3,000 applications for accommodation annually.

“Typically, fewer than 20 per cent of applicants will find permanent alternative accommodation in social or affordable rented dwellings, because the availability of such stock has diminished in the borough as a result of properties being lost to Right to Buy and through lack of new provision.

“Last year, only 462 households (15 per cent) were rehoused in social housing. This year it is estimated that homes will only become available for 400.

Warrington Borough Council's cabinet will decide on proposed action

“Consequently, we are now facing waiting times that can be over three years, and insufficient temporary accommodation means that the council is increasingly having to resort to more expensive bed and breakfast accommodation.”

It goes on to say that there are currently 79 households in hotels, 52 of which are families, and 36 of those have been in hotels for longer than six weeks – in breach of statutory duty.

“The council has attempted on a number of occasions to buy properties that would be suitable to address needs and significantly reduce costs, but it has encountered difficulties in completing the acquisitions,” the document goes on to say.

“The primary reason for failing in this regard is the inability to move at pace in the negotiation and buying of properties, either on the open market, auction or direct approaches such as bidding for affordable homes from housebuilders.

“The time to make and ratify a decision to buy even a relatively inexpensive property means that contracting with the council is unattractive.

“To overcome the difficulty of being able to react at pace in a competitive marketplace, it is proposed that a fund be established that allows for the buying of properties to accommodate those residents of the borough for whom we have a duty of care.”

The fund would be administered by the Growth Directorate, responding to accommodation requirements from the Family and Wellbeing Directorate and Homelessness and Housing Service via the review and approval of a business case.

It is anticipated that all properties would be owned, operated and maintained by the council, although third parties may need to maintain the properties.

The council adds: “We have sought alternatives to hotel accommodation and have been approached by an organisation called Stef and Philips, in relation to the council using units in a property that it manages, Peninsula House, to provide temporary accommodation for use by the Homelessness Service.

“Six of these units are now being used by the council under the terms of a contract which gives the council a licence to occupy the units.

“These have proven to be very successful, and this cabinet report is to seek authority to enter into an additional contract with Stef and Philips to provide further units and meet anticipated demand from the homelessness service.

“The housing under our control is now fully occupied, so no further accommodation is available from these properties.

“We have therefore secured the full use of Villaggio Hotel, 15 rooms at Patten Arms Hotel and are currently using other locations such as Travelodge for ad hoc rooms, in addition to smaller premises such as The Cross Bar Hotel and Simons Guest House to provide additional temporary accommodation.”