A pioneering project to give the homeless a roof over their heads could be set up in Preston.

New company, Recycling Lives, hope to build a permanent shelter for at least 25 homeless people in Kent Street, Preston, on the site of a former warehouse.

The venture, which has estimated costs of £1.6million, will provide residents with a home, a place to work, training and a job recycling goods, including television and computer monitors, if plans are given the go-ahead.

Bosses also hope to tender for small council contracts and hope the project will be completely self-sustainable.

The scheme is the brainchild of former charity worker Danny Gallagher and PNE chief executive, Steve Jackson, who is also a director of Preston Recycling.

Mr Gallagher said: "Everyone deserves a second chance.

"When they're on the streets, all they're concerned about is where their next meal is coming from.

"We want to take away the everyday concerns that we take for granted, giving them a purpose and giving them back some pride."

He added that certain criteria had yet to be met and discussions would take place in the New Year. The scheme is unlike any other because it encourages its residents to find employment inside and outside the project.

All money raised from the venture will be ploughed back into the business.

Mr Gallagher, who used to work for homeless charity, Emmaus, said: "Recycling Lives works in partnership with corporate business in a very unique and innovative way for sustainability.

"I believe it's about delivering a sustainable business and we want to work with all other agencies in the homeless sector."

The plans have been welcomed by homeless chiefs at Preston City Council and it is hoped the centre will be up and running in six months.

Kevin Mordue, head of advice services at the council, who is responsible for compiling the city's Homeless Strategy, said: "This type of scheme fits perfectly into our strategy and I can see it being mentioned in the next one.

"It seems to help the more damaged members of society and it gives them a clear chance of not becoming homeless again. It gives them somewhere to live, a job and therefore some self respect. It's definitely something we would support."

"It would be a bold person who said they could get rid of homelessness," said Mr Jackson.

"But everyone at Recycling Lives is committed to providing a second chance to people that have lost their way and wish to restore dignity and confidence in their lives."

"Some people sometimes have the perception that homelessness is the waste within our society. Recycling Lives hopes to help these people to make a valuable contribution to the community and to change this perception."

Plans are in the process of being submitted to planning officers at Preston City Council and it is hoped they will be seen by the council's planning committee in the New Year.