A housing association has begun purchasing private rented homes where tenants have been issued Section 21 eviction notices.

The acquisitions are being made through Knowsley council’s Private Rented Rescue Scheme (PRRS), which provides taxpayer-funded grants to enable housing associations to buy properties at risk of being sold.

The scheme is triggered when a landlord serves a Section 21 notice in order to sell the home with vacant possession, allowing the council to intervene and keep the property in use as affordable housing.

To support the initiative, the local authority has set aside a £1 million fund, drawn from Section 106 contributions paid by developers instead of delivering affordable homes within new developments.

Housing associations are able to bid for grants to help cover the cost of buying properties and carrying out essential repairs.

Prima Housing Association has so far secured seven homes through the programme, with rents subsequently set at the Local Housing Allowance level for the area.

Prima spokesperson says: “The Private Rented Rescue Scheme is a fantastic initiative making a big difference reducing the number of people at risk of becoming homeless when they have done nothing wrong.

“It gives people good quality, secure homes that are fully regulated and stops families being separated or struggling to find a suitable place to live after being evicted.

“The scheme reduces their monthly rent and provides vital stability because people can continue living in the same home and community where they are close to schools, work, family and friends.

“It also reduces the potential of families being split up when moving into temporary accommodation or having to relocate to a new area which can be heart breaking and really disruptive.”

The spokesperson adds: “We really welcome the Renters Rights Act … It is our belief the new legislation will lead to more private landlords selling their properties as many will not want to comply with the new regulations.

“We want to acquire more homes via the Private Rented Rescue Scheme and hope other local authorities look to establish similar models.”