I am considering converting at least one HMO to Asylum Seekers?

the simple answer is DON’T

its a tough world out there but if you want your investment destroyed, no say on what happens to your property and if you ever get it back the 10’s of thousands you would have to spend to bring it to a saleable condition go down that route.

demand in brighton is always there. yes, yields are low but at least you’re safe in the knowledge that your asset is appreciating.

better sell and take the cgt hit if you can’t tough it out.

im in brighton too and know the market very well.

Due diligence comes to mind
But How do you do that when any other Landlords who might have signed up will only be in the first year or two of any Lease with any of the Asylem seekers accommodation providers !
Have a look at the contract and requirements they want
Them take that contract to an expert housing solicitor for their expert advice.
The next poster may say it’s great and you should sign up today but he/she might not own a property !
Good luck in your decision

Don’t play their game. Don’t help this government. Don’t betray your fellow citizens that need accommodation.
I hope that every landlord that falls for this has a terrible time including having their BTL loan pulled.

I’m avoiding the obvious emotive aspect of this matter and just focusing on the business side. Although you use an agent you seem to suggest you are exposed to (anxiety?) from the uncertainty every year. If you quantify the extra time you spend on the properties because of this and factor into your overall input/output assessment. Make an input/output comparison to the asylum seeker route once you have a thorough understanding of their contractual obligations. You will compare apples with something like apples at least. And satisfy yourself of their obligations to return the property in a stated condition at year 5 or 10.

Barking mad unless you have a massive bank balance or savings to gut the property at the end of the contract.

Read the contract very very carefully as “return in condition taken on” usually just means sloshing emulsion over the mould.

There are reasons why you heard horror stories – you are contracting with large faceless organisations who represent the government, which has already made clear how it really feels about landlords.

Once they have you on board, you have lost the control you usually have dealing with ordinary tenants. Far better to deal with ordinary people who mostly play by the rules than a government that feels it can change the rules with impunity.

Bear in mind that this is rent to rent and Serco are a private company. The Renters Rights Act will make you, the landlord liable for any mistakes they make. I’m not sure what type of tenure Serco is offering the occupants, but if its assured tenancies, it will make it practically impossible for you to recover your property as they will not be permitted to use the new s8 ground 2a

Reply to the comment left by DPT at 16/05/2025 – 16:31
Dealings with Serco will be via a commercial let so none of the RRB applies. They are using this as good PR to catch the unsuspecting LL out – making them believe thier offer is far more attractive because the RRB wont apply.

One look at the Serco contract and all its caveats will make it clear just how much they value the carte blanche use of your property for them to housing the worlds unwanted…

Don’t be fooled by the sway of above market rent – this will pale into insignificance when you realise the cost of annual insurance for cover for a property that has occupants of no confirmed ID or legal status and the amount it will take to get it back into the condition you gave it to them.

If others follow in your footsteps locally too then house prices will drop/your asset depreciates. Don’t be surprised if your neighbours kick off and you also get inundated by complaints of tenant behaviour. At the end of the day you are the LL and any sh*t falls at your feet to deal with.

Still think its worth it?

Reply to the comment left by Reluctant Landlord at 16/05/2025 – 17:36
Don’t worry Blackrock will do you a massive favour and take it off your hands for 10p in the pound (on its already depressed value).

I tried to use Clearspring in Wales last year.
Following the initial inspection I was given a very comprehensive list of improvements that needed to be completed (the property was my old family home and previously rented as an air bnb with a grade 2 – which is high- from tourism Wales).

After completing all the work the property was re- inspected and additional work – not listed on the original list was flagged up.

This happened 3 more times – different people turning up and asking for additional work to be done…….6 months and 10k latter, the final inspection came and guess what?…….yet another comprehensive list of additional requirements.

So if your happy to forgo 6 months rent, spend upto or in excess of 10k and work your sock off……..go for it –

Personally I withdrew my application and put a normal family I there on an AST.