Labour doesn’t like landlords but really needs us for growing numbers of asylum seekers

It’s bizarre, isn’t it? Landlords, already battered by a barrage of legislative changes and economic pressures, are now being asked by the Labour government to offer their properties to asylum seekers.

The National Residential Landlords Association (NRLA) has voiced strong opposition, saying the government needs to support us if they want more homes to become available.

For landlords, the Home Office request feels like a bitter irony – a government that has systematically squeezed the PRS now seeks its help to address a problem of its own making.

Britain’s housing crisis is no secret. With rents rocketing and house prices soaring to over eight times the average salary, young and working-age Britons are struggling to afford homes.

Housing for asylum seekers

The tax burden, the highest since World War II, weighs heavily on these same citizens, who see their contributions funnelled into government-supported housing for asylum seekers.

Around 99% of migrants arriving via small boats claim asylum, gaining access to accommodation, healthcare, education and a weekly allowance of around £50.

While this might be less contentious if housing were abundant, the reality is different: every property allocated to an asylum seeker is one less for a British family priced out of the market.

For landlords, the government’s appeal to house asylum seekers – facilitated through contractors like Serco – comes against a backdrop of relentless policy changes.

The loss of Section 24 means landlords can no longer fully deduct interest on buy to let (BTL) mortgages, slashing profitability.

The abolition of Section 21 will make evictions a costly, drawn-out process, leaving landlords vulnerable to months of lost rent.

The end of Assured Shorthold Tenancies, with their six-month minimum, allows tenants to leave early, further destabilising income streams.

Costly EPC C upgrades

Add to this the Renters’ Rights Bill (RRB) and the looming EPC C standard, which applies only to the PRS and not to social or council housing. These measures feel like targeted attacks, designed to force landlords to sell up.

Why, then, would landlords volunteer to house asylum seekers?

Many of us feel betrayed, having worked hard to build property portfolios only to face what could be seen as punitive legislation.

The NRLA’s frustration echoes a broader sentiment: the government cannot expect cooperation from a sector it has consistently undermined and belittled us (even when they say ‘not all landlords’ are bad…).

The housing of asylum seekers also raises questions about fairness.

Right to Rent checks, a legal obligation for PRS landlords in England, obviously won’t need to be applied when government contractors are involved.

I imagine that some of the new rules under RRB won’t be enforced either.

This double standard will fuel resentment, as most landlords face strict compliance burdens while others will appear to be exempt.

Government needs PRS landlords

Meanwhile, the government’s reliance on private rentals to house asylum seekers – often at a cost of £145 per night for hotel accommodations when properties aren’t available – highlights its failure to address the root causes of migration and housing shortages.

Tenants, too, are caught in the crossfire. The government’s push to regulate the PRS, cheered on by groups like Shelter and Acorn, has led to an exodus of landlords.

As properties are sold, rental stock dwindles, leaving tenants scrambling for homes.

The irony is that the very policies meant to protect renters may be pricing them out of the market or, worse, making them homeless.

When tenants finally realise that government actions have reduced their housing options, the relentless narrative blaming ‘greedy landlords’ may lose its shine.

The social contract – where citizens contribute through taxes in exchange for support, especially in later life – is slowly fraying.

Paying to be outbid

Landlords, like other taxpayers, see their tax contributions being used to outbid them in their own market, as the government secures private rentals for asylum seekers.

This will breed resentment, not just among landlords but among young Britons who feel their sacrifices are unrewarded. I’m already seeing this on my social media feeds.

The migration debate, already heated, is ignited further by the optics of newcomers receiving homes while locals languish on waiting lists.

For landlords, the decision to house asylum seekers is understandably fraught.

On the one hand, guaranteed rental income from (lucrative) government contracts could be appealing.

On the other, the risks – potential property damage, bureaucratic hurdles and a public backlash – loom large. Just read the experiences of other landlords.

Many landlords I know are simply unwilling to engage with a government they feel has declared war on their livelihoods.

The solution lies not in cajoling landlords but in addressing the housing crisis and migration policy holistically – and honestly.

Building more homes, streamlining asylum processes and restoring fairness in the PRS would do more to ease tensions than appeals to a beleaguered sector.

Until then, landlords will remain sceptical, and the divide between government and the PRS will only widen. This will not, I predict, end well.

Until next time,

The Landlord Crusader