Properties purchased by Wirral council on Merseyside as investments have collapsed in value by over £9m.

They include £8.4m for a shopping centre, £6.8m for the Birkenhead Vue cinema, £10.59m for two other shopping centres, as well as £9.2m in other investment properties, producing a total of £34.99m. 

In March 2024, these were estimated to be worth only £30.1m in total and now auditors Grant Thornton say they have a value of £26m, a drop of 25% from when they were bought.

This is the same council that’s holding a consultation on yet more residential landlord licensing. 

A spokesperson for the council said in December: “This scheme is about tackling rogue landlords and protecting tenants in Wirral, dealing with those who provide – and profit from – renting out homes which are not fit for purpose and poor quality.”

However Grant Thornton’s report on the council’s financial accounts – published this week – found three “significant weaknesses” and made 12 recommendations for improvement.

In response, council management said all investment properties were valued annually and the council will consider if they should be included in the investment strategy reported to councillors in future.

The council this week revealed it wants a £40m taxpayer-funded bailout over the next two years as it is “highly likely” it would go bankrupt without it.

Council leader Paul Stuart says the authority is “implementing detailed and stringent measures to address the financial challenges,” adding, “Years of underfunding and the rising costs and demand for social care services have outstripped available funding necessitating major changes in operations, including some very difficult and unwanted decisions to ensure the council can provide its statutory services and look after and take care of our most vulnerable residents.”