Homelessness charity the Depaul Trust will use the money to buy and refurbish a building in Westminster that it will use as a hostel. The previous building, used by the trust for 14 years, was becoming too run down.
Una Barry, deputy chief executive of the trust, said: "It needed substantial amounts of money to rebuild it or knock it down."
The new building will have space for 12 homeless young people in single rooms. There will also be more room for supportive work, and the trust plans to offer training and education.
www.odpm.gov.uk
See Numbers game, p5.
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