Nearly twice as many asylum seekers live rent free in homes than hotels – claim

Almost double the number of asylum seekers are living in taxpayer-subsidised rented homes compared to hotels, the Daily Mail has revealed.

By the end of December, 38,000 asylum seekers were housed in hotels, costing £5.5 million every day.

However, 66,000 have been placed in ‘dispersal accommodation,’ primarily shared private rentals.

The Home Office claims this approach is more cost-effective than hotels, but there is growing anger among Brits facing social housing shortages.

Asylum seekers in new-build properties

That frustration intensified this week with reports of asylum seekers occupying expensive new-build properties, such as four £300,000 townhouses in Suffolk.

They boast ensuite bathrooms, underfloor heating and EV charging points.

Elon Musk, reacting to the Daily Mail’s coverage of those new build homes, tweeted: “This must stop now.”

In the Suffolk village, unnamed by the newspaper, nearly 800 local people are waiting for council or housing association homes.

Promotional material describes these homes as ‘nestled in the tranquil and sought-after village’ and ‘designed for modern living and comfort’.

Landlords need to be cautious

Nathan Emerson, the chief executive of Propertymark, told the Mail: “The upturn of private companies offering non-traditional options (for renting) can seem appealing as it can provide a fixed, reliable, and hassle-free income stream by eliminating concerns about void periods, late rent payments, and tenant management, but caution is essential.

“Some contracts may be heavily skewed in favour of providers; therefore, it is crucial for landlords to thoroughly understand their legal rights and obligations before signing any agreements and to seek professional advice, as some contracts can be complex and difficult to reverse.”

Among those providers is Serco, which has a decade-long Home Office contract launched in 2019 under Theresa May, which was initially worth £2.1 billion but has surged to £5.5 billion, a National Audit Office report revealed.

Asylum accommodation costs are projected at £15.3 billion from 2019 to 2029.

Taxpayers must pay

Legally, the government must support destitute asylum seekers during claim processing.

Dispersal accommodation, costing £14 per person per night versus £145 for hotels, is deemed more economical.

Ministers report a £1 billion cost reduction last year by reducing hotel reliance.

Labour aims to eliminate the use of asylum hotels by 2029.