A FORMER children's home in Newport could be transformed into new accommodation for the city's homeless people.

The city council is this week expected to approve the decision to put Cambridge House, in Stow Park Avenue, up for sale, with the preferred option being to sell the site to a partner organisation at market value.

The building could then be eligible for Social Housing Grant money, to cover "the refurbishment of the property to provide supported accommodation", according to a council report.

The council said its homelessness team was looking after 355 households in Newport as of last summer, including "a number of whom are single people who would benefit from supported housing".

By transferring them into a refurbished Cambridge House, the council - via a partner Registered Social Landlord - could then "create vacant bedspaces in current units of temporary accommodation, for which there is also a waiting list".

Cambridge House was closed down last May because it was "no longer considered suitable as a property to provide safe care" for children, including "extensive challenges because of the risks of children being exploited and criminally targeted" within the city-centre area.

The council also said the building was in "poor condition physically" and would need "extensive capital spend" for "continued safe use".

South Wales Argus: The former Cambridge House children's home in Stow Park Avenue, Newport.The former Cambridge House children's home in Stow Park Avenue, Newport.

Redeveloping the property into accommodation for homeless people "offers the best long-term solution" for Cambridge House, the council said.

The site is best suited to rooms for single people, the report notes, and "due to the physical size constraints of Cambridge House, it is not envisaged that any of the bedspaces will be suitable for two person households

Money generated from selling the property will go into the council budget for capital investment. Its current market value is unknown, but as well as any profits made from selling the property, the council will also save £85,000 annual costs of running the children's home.

If no partner organisation is interested in buying the property and running it as homeless accommodation, then Cambridge House "could be disposed of by way of public auction", according to the council report.

Newport City Council will this week seek approval from its cabinet member for assets to dispose of the freehold of Cambridge House.