More than a dozen young people in Liverpool are living in unregistered children's homes located predominantly in the north of the city. New information released ahead of a Liverpool Council children and young people scrutiny committee has detailed how the local authority is working to tackle the emergence of problematic premises.
In July, it was revealed £120m was spent by local authorities across Merseyside in the last year on private children's homes, and some of that money is being paid to house children in unregistered, illegal settings.
Ofsted data shows rise in unregistered homes
Analysis of Ofsted data has shown that cases of unregistered homes in England increased from 144 in 2020-21 to 680 in 2024-25, which is thought to be an underestimation. The majority of unregistered children's homes are secured on a rental agreement as part of a private tenancy arrangement.
Liverpool Council data indicates that within up to July this year, there have been nine out of area placements of children in unregistered homes. In total, there are 14 children currently living in unregistered homes in the city across 12 different providers.
Properties concentrated in north Liverpool
All children's homes in England must register with Ofsted and carrying on or managing a home without registration is a criminal offence. Unregistered children's homes operate outside of independent and regulatory oversight, meaning the children placed there have no assurance of safe or suitable care.
City council officials said the majority of unregistered homes are secured on a rental agreement as part of a private tenancy arrangement. Properties are predominantly located in the north area of the city, including areas such as Croxteth, Norris Green and Fazakerley. They can also be found in Old Swan, Kensington and the Wavertree areas.
Council and police response
Properties can be between two and four bedrooms and often with a maximum of two children. Collectively, Liverpool, Sefton, Knowsley and Wirral Councils spent £119.6m on funding private services in 2025/6, according to responses to Freedom of Information requests.
Firms lodging applications with Merseyside councils' planning departments often do not show up on Ofsted records. Cllr Liam Robinson, leader of Liverpool Council, supported by the city's MPs, has made representations to the government to highlight the issue.
According to the local authority, working relationships across children's services, the council planning services and Merseyside Police have strengthened in response to tackling the emergence of unregistered children's homes. Once agencies become aware of a child looked after being placed in an unregistered home in the city, Ofsted are informed and in some circumstances individual and coordinated joint visits are completed.
Ofsted announced in July that councils that place children in unregistered homes could see their children's services performance ratings downgraded, and the inspectorate has carried out its first successful prosecution against this type of provider.
