Hundreds of people are facing imminent homelessness after their Merseyside flat blocks were condemned by the fire service as being unsafe.

Residents of Beech Rise and Willow Rise in Kirkby, Merseyside – consisting of 160 flats in total – have been told they need to find somewhere else to live “immediately”.

Sky News understands a meeting took place this morning involving the government to discuss the situation, although one source described the circumstances as a “waiting game” to see what other parties do next.

Due to the worsening condition of the buildings, Merseyside Fire and Rescue Service told building managers a round-the-clock “waking watch” – a fire safety system where trained personnel continuously patrol a building – was required as a safety measure.

However, the money to pay for the waking watch has run out, and with no money for repairs, the fire service has told inhabitants to leave using a rarely employed power known as a prohibition notice which will be issued when the watch stops.

Among the issues are broken lifts, poorly fitted doors and malfunctioning fire alarms.

Knowsley Council says it is funding a short-term extension to the watch – understood to cost thousands of pounds per day – while people search for accommodation, but only has the money to do this “for a short period”.

Anneliese Midgley, the MP for Knowsley, says she is working with the council and government to support the impacted families.

She said the situation is “nothing short of a scandal”.

But there remains the prospect of an “emergency evacuation” if a watch is not in place.

There are allegations of mismanagement against previous owners and management firms, including around finances, made by the buildings’ current managers, the Parklands Management, in which residents are shareholders.

Dempster Management, the most recent firm appointed to run and maintain the buildings, is understood to be continuing to help with operations as Parklands has run out of money.

Graham Morgan, the leader of Knowsley Council, said the residents have been “let down and neglected for years” by private owners of the blocks.

Vulnerable residents have been contacted by the council, and some could receive emergency rehousing if necessary.

Mr Morgan added that the council has asked the government for help with funding – and help potentially going after the private companies “to recover costs”.

The buildings were previously council properties but were taken over by the private sector in the mid-2000s.

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Merseyside Fire and Rescue Service said: “MFRS officers have worked tirelessly alongside Knowsley Council for several years to engage with successive management agents to ensure responsible persons fulfil their obligations under fire safety law, including issuing enforcement notices requiring remediation work to be carried out.

“A waking watch has been in place in both Beech Rise and Willow Rise to ensure the safety of residents while works are carried out, however, it has become evident that the work required has not progressed and is unlikely to be carried out.

“The management company would not fund the waking watch beyond 21 May 2025. The funding of the waking watch has been extended by Knowsley Council for a short period at their cost, despite them not owning the buildings, but this is not sustainable.

“This means the buildings will no longer be safe for residents to live in after the current waking watch ends, and MFRS will have no choice but to issue a prohibition notice. When the prohibition notice is served, residents must leave immediately, and they will need to be rehoused.

“We understand that this is disruptive and unpleasant for residents, however, all other options have been exhausted and the safety of residents is of paramount importance.”

Parklands Management told Sky News: “The situation at Parklands has become appalling for all involved. Residents and leaseholders are facing an unprecedented and deeply distressing crisis that stems from years of systemic neglect and mismanagement.”

They added: “The scale of investment now required to bring Parklands up to standard is in the multi-millions, and yet those bearing the burden are ordinary leaseholders, many with no financial capacity to contribute further.”

Dempster, who took over the management of the towers in late 2023, told Sky News: “Upon our appointment, we inherited a development that had suffered from years of serious neglect. The scale of disrepair was significant, requiring substantial investment that could only be funded through service charges payable by leaseholders”

The statement added: “Despite our brief tenure, we have faced exceptionally difficult circumstances, largely due to the dire financial position and structural issues left behind by previous directors and managing agents.”

The decision of Dempster to resign in April 2025 was a “commercial” one because conditions were “impossible”.

“We remain hopeful that the residents and leaseholders of Parklands will find justice and a lasting resolution. In today’s society, no one should be left to face the threat of homelessness, especially due to failures beyond their control,” the company added.

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A spokesperson for the head lessor, the Virgin Island registered company Rockwell FC100, said the requirement to keep the buildings safe rested with Parklands Management, and said it was “extremely disappointing that due to a combination of factors including their non-collection of significant essential funding, the buildings have been allowed to deteriorate to the extent which they have”.

They added they were “investigating how best to move forward”.

Parklands said they have spent more than £170,000 on safety works and service charge arrears are at more than £700,000, with £250,000 also owed to creditors.

They claim that, because post-Grenfell cladding work has not been completed, recovering service charges is “virtually impossible” and, due to disrepair, flats can be worth as little as £10,000.