Over the past four years demand for temporary accommodation for families has grown considerably
STOCK IMAGE: silhouette of a woman standing by a window.(Image: Getty Images)
The number of homeless families living in temporary accommodation in one part of Merseyside has increased by more than 180% in the last four years. This rise in homelessness is being partly driven by private landlords leaving the housing sector, according to Knowsley Council, preferring the profits from ‘stocks and shares’ over rental income.
The scale of homelessness in Knowsley was laid bare during an Inclusive Growth and Skills Scrutiny Committee meeting held at Huyton’s Municipal Buildings tonight (September 9) where elected members were asked to approve a series of recommendations, including those outlined in a report on temporary accommodation in the borough.
Like every local authority, Knowsley Council has a statutory duty to provide temporary accommodation to residents who may be homeless, eligible for assistance and in priority need. Knowsley Council satisfy this obligation through the use of ‘dispersed accommodation’, which is either owned by the council, leased from private and social landlords, or utilising hotel accommodation.
In terms of the data around the use of temporary accommodation in Knowsley, the report confirmed the demand for has ‘grown considerably’ over the last four years.
The figures show that in July 2021, there were 53 households (31 singles and 22 families) accommodated by the council, which has risen to 109 (44 singles, 3 couples and 62 families) by the end of July 2025 – a 181% increase in homeless families during this period.
The council said it continues to lease properties from both the private and social rented sector, but notes the reduction in temporary accommodation in the private rented sector.
Responding to the report, Cllr Chantelle Lunt asked: “Looking at the demographic of temporary accommodation needs and how that has risen, I noticed that the families have gone up significantly.
“So for instance, the amount of single people has gone from 31 to 44 between 2021 and 2025 but families have risen from 22 to 62 families. Do we have any idea why that is, and what we’re doing to address it?”
Alan Broadbent group, manager of housing, who presented the council report, said one factor is the increase in Section 21 ‘no fault’ evictions since 2021 – these evictions were banned during the covid 19 pandemic – and added: “I think part of the reason is [also] the number of private rented tenancies that are coming to an end, that has increased considerably.
“I don’t profess to know the exact answer of why landlords are leaving. I think part of the reason is some of them, there will be the fear of what is coming with the Renters’ Rights Bill.
“The actual returns on private rented property is less now because of the changes in taxation. So I think some of them are thinking it’s a safer bet to put more money in stocks and shares.”
As with other local authorities across England, Knowsley Council uses hotels and bed and breakfast style accommodation to meet homeless temporary accommodation demand. The council said the benefits of using hotels are that they can provide ‘surge capacity’ at times where there is ‘insufficient dispersed provision’ and it can be booked at short notice.
There is no time limit on hotel use for single person households, but households with dependent children should not be accommodated for longer than 42 days. The council confirmed that there are currently ten households in Knowsley – with dependent children – occupying hotel provision, of which non have exceeded the 42-day maximum.
The costs for this type of accommodation continue to be significant and despite a fall in the percentage of homeless people in hotels, the costs have increased from the same period last year.
Council’s can receive a subsidy from central government for some temporary accommodation including hotels. In Knowsley, the average hotel cost-per-night is £80 and the council receive £20 in subsidy – this means the council pays £60-per-night for each hotel stay.
During the first quarter of this financial year, Knowsley Council is estimated to have spent £141,300 on hotel stays. In the same period a total of 9,121 nights of temporary accommodation were provided, of which 26% were in hotel accommodation.
The total cost of temporary accommodation – of all kinds – for the whole year is estimated to be more than £2.1m. However, the council said some of this subsidy loss will be recouped from the Preventing Homelessness Grant, allocated to support the local authority’s approach to tackling homelessness.
The council also confirmed that the use of hotel provision for temporary accommodation will remain an integral part of the local authority’s approach to providing temporary accommodation, but hopes an increase in social housing provision and council owned buildings will lessen its reliance on hotels in the future.