Agenda item

Report of the Assistant Director - Communities

The Cabinet considered the report of the Assistant Director -Communities indicating that as part of the Council’s statutory function in discharging its duties under the Housing Act 1996, Homelessness Act 2002 and the Homelessness Reduction Act 2017, the Council must provide interim accommodation while it made enquiries if it had reason to believe that an applicant might be:

·       Homeless

·       Eligible for assistance, and

·       In priority need.

These functions were delivered through the Council’s Housing Options service and accommodation requirements sourced from a mix of Council stock, Commissioned Providers and accommodation providers from the private sector. Since August 2023 there had been a 67% increase in the number of households in temporary accommodation. Consequently, the Council had needed to source an increasing amount of accommodation from the private sector. This report outlined a strategy for procuring good quality, furnished, and maintained accommodation for eligible homeless households through a mix of dispersed temporary accommodation.

The following Appendices were attached to the report:

·       Appendix A – Financial and Commercially Sensitive Information

·       Appendix B – Equality Impact Assessment

Decisions Made:

That

(1)      authorisation be granted for the Assistant Director - Communities to conduct a procurement exercise evaluated on the basis of the most advantageous tender, to commission accommodation providers to deliver temporary accommodation to eligible homeless households entering into a contract for a minimum of 2 years plus 1 optional year (2+1); and

(2)      delegated authority be granted for the Assistant Director of - Communities, in consultation with the Cabinet Member - Communities and Partnership Engagement, to award the Contract(s) resulting from the procurement exercise and to award any extension or amendment thereof following a review of the original award.

Reasons for the Decisions:

(i)       To ensure that there was access to sufficient provision of temporary accommodation to meet a growing need.

(ii)      Costs associated with the provision of temporary accommodation were reduced.

(iii)      That accommodation provided was of a consistently good standard as set out in the terms of the contract.

(iv)     To ensure that the Council was compliant with Public Procurement Regulations.

Alternative Options Considered and Rejected:

1.       Lease self-contained dispersed properties from registered providers for use as temporary accommodation.

There was high demand for affordable accommodation across the housing market and from social housing provided by registered providers.

Risk: Reduction in social housing accommodation available.

If social housing properties were used for the purpose of providing temporary accommodation it would reduce the availability of affordable accommodation for Sefton residents. The impact of this could lead to further rises in homelessness as some households could find themselves in unaffordable private sector tenancies.

2.       Lease empty properties directly from landlords in the private sector and manage the accommodation internally.

This option was high cost and resource intensive for the Council to deliver at present. The accommodation provided would need to be maintained, furnished, and managed by the Council. The Council did not currently have the resources to deliver this.

Risk: Financial risk associated with the time it would take to recruit and develop a new service to manage this function.

The initial costs for setting up the service from recruitment and training plus other costs for establishing the properties as homes, for example, providing furniture and utensils.

3.       Do nothing.

The Council could continue to spot purchase from the open market at nightly rates agreed at the time of booking.

Risk: Lack of availability and fluctuating costs.

During holiday seasons and when there were large events in the city region, the price of booking accommodation during those periods increased. There were also fewer options available during those periods.

Although the lowest rate was negotiated at the time of booking accommodation there was some uncertainty regarding the long-term costs of providing the accommodation due to how quickly the market could change depending upon demand at the time.