Government is expecting more landlords to accommodate asylum seekers

Labour says that more private landlords will need to play a bigger role in housing migrants, the Daily Telegraph reports.

The move will help meet Labour’s pledge to phase out migrant hotels, saving taxpayers an estimated £1 billion annually, as stated during last week’s Spending Review.

The decision to shift away from hotels, which currently cost £145 per night per asylum seeker compared to £14 for private accommodation, aims to ease financial burdens.

However, critics are warning that doing so will increase competition among renters for homes.

Backlog of asylum claims

Chris Philp, the shadow home secretary, told the Telegraph: “No matter how much Rachel Reeves may claim [Labour] will get the backlog of asylum claims down – immigrants will still need a place to stay.

“With experts warning that the Government will get nowhere near their target of delivering 1.5m new homes, the British people must come first when it comes to access to housing.

“Accommodating illegal immigrants in flats takes up valuable space needed by our own young people.”

Nathan Emerson, the chief executive of Propertymark, also warned that competition or homes in the private rented sector was stiff with an average of seven applicants for each home.

Serco among PRS contractors

In recent months, Property118 has reported on a bid by the Home Office to encourage three contractors to find more PRS homes.

They include Serco, which is offering landlords guaranteed five-year rental contracts, including full rent paid on time, along with free property management.

Property repairs, utilities and council tax bills are also covered.

The National Audit Office revealed in May that asylum seeker housing costs could reach £15.3 billion, triple the £4.5 billion initially projected by the previous Conservative government in 2019.

That’s despite a 15% reduction in hotel use from 38,079 asylum seekers in December to 32,345 by March.

The Local Government Association welcomed the plan to close hotels but stressed the need for early council involvement.

Prime Minister Keir Starmer, who vowed to end hotel use for asylum seekers before last year’s election, faces mounting pressure to balance housing demands while fulfilling this commitment.