Purpose

To approve use of funding available to support
Local Authority acquisitions to deliver Round 3 programme funding
and increase temporary accommodation to support homelessness
pressures.

Decision

The Assistant
Director  Housing Services  has approved that  the
underspend for the Local Authority Housing Fund  2 programme, in the sum of
£547,000  and the additional Local
Authority Housing Fund  3 allocation
awarded by MHCLG to the Council with a current balance of
£303,000 are combined into one programme to further progress
property acquisitions and associated costs.

Reasons for the decision

Successive governments
have recognised that Local Authorities such as Wirral Borough
Council which  have welcomed Ukrainian
and Afghan arrivals, continue to face challenges in securing
settled accommodation for these households, which unless alleviated
will further impact on existing housing pressures. In December
2022, the LAHF was launched, providing Local Authorities successful
in securing funding, 40% of the total costs to secure properties
for both this purpose and to support councils in increasing their
temporary accommodation for homelessness pressures.
 
Currently it is
estimated the match funding under the Wirral’s LAHF2
programme will have an underspend of just under £547,000 once
all 25 properties are purchased. 
 
It is proposed that
the match funding allocated to the LAHF2 programme be rolled into
the new LAHF3 allocation which the Council has been
awarded.  This will enable up
to  six properties  to be  purchased using
this resource, one of which must be for Afghan resettlement with
the remaining five for use as temporary accommodation in line with
the funding requirements of LAHF.  As of
22nd December 2025, the Council owns a total of 56
residential properties, 20 of which are currently used for
temporary accommodation.
 

Alternative options considered

The Council could
choose to give the full funding programme to Registered Providers
so they can acquire additional housing in the borough. However, if
the properties were owned by the Registered Providers, they would
receive all future rental income. This means the Council would not
benefit from any rental income generated by those homes.
 
The Council already
has an existing management agreement in place with a local
Registered Provider of Affordable housing in relation to its small
social housing stock base.  These
additional homes can be added to this agreement without the need to
procure a further partner.