Landlords turn to asylum seeker housing amid fears over Renters’ Rights Bill

A property expert has warned fears over the Renters’ Rights Bill are driving many landlords to house asylum seekers instead.

Paul Shamplina, founder of Landlord Action, told the i newspaper that landlords are now striking deals with Serco instead of renting to private tenants.

Industry experts told the i landlords are drawn by guaranteed rent and no maintenance bills.

Landlords are fearful of the Renters’ Rights Bill

Mr Shamplina told i that some landlords are choosing to work with Serco in response to government legislation, though others refuse to do so.

He said: “The offer, for a landlord, is very attractive. There is guaranteed rent over a long period with no voids and no rent arrears. They don’t have to be self-managed. These leases fall outside of the Renters’ Rights Bill. We’ve had a lot of regulation. We have the possibility of taxing landlords with National Insurance. Landlord confidence is at an all-time low and everyone is feeling the squeeze. So the kind of stability this offers becomes even more attractive.

“Some landlords won’t sign up for it, ethically, because they are aware there is a shortage of rental stock for other people in the community – students, professionals and others. It’s also politically sensitive, it’s a hot potato. The policy is decided by the government. Landlords have to make their own mind up whether it suits them.”

He advised any landlord considering housing asylum seekers to read their lease agreements carefully.

He added: “With long contracts, some landlords have found their properties have been left in bad condition. You need to look at how tight the terms are when it comes to repairing clauses and liabilities. If there is anti-social behaviour, you need to make sure you understand notice periods and break clauses.”

“The contracts need to be looked at in detail. I would recommend getting independent advice. You’re effectively sub-letting, so you need to make sure your mortgage dealer is aware and you have the right insurance in place.”

Too good to be true

Wendy Whittaker-Large, who runs the HMO Action Group, also said she has seen many landlords choose to rent with Serco due to government legislation.

She told the i: “With the Renters’ Rights Bill, there’s a fear that you’re not going to be able to regain control of your property. There will be longer periods without any rent when there’s a problem with a tenant.

“So when an email comes from Serco or other operators, these five-year contracts with guaranteed rent are becoming more attractive.”

However, Mr Shamplina warned that claims on social media about making easy profits from asylum seeker accommodation contracts are misleading.

He said: “If people are watching social media for a few minutes saying this a good idea, they should be careful. If anything sounds too good to be true, it might be too good to be true. This asylum seekers housing contracts is not a get-rich-quick scheme. There isn’t any such thing with property. It’s a business, not a hobby.”

Landlords are completely fed up

As previously reported by Property118, chairman of the Eastern Landlords Association, Paul Cunningham, said selective licensing will push landlords to asylum seeker accommodation.

He said: “Landlords are completely fed up with the council and everything they do towards landlords, so an option for them is to go down the Serco route.”

Paul says he has personally discussed the option of leasing his properties to Serco.

He says: “It was purely only for the selective licensing scheme, and I’ve emailed members of the Eastern Landlords Association saying this could be an option if you choose.

“We are here to put options to landlords, and they can decide how they want to run their business.

“The level of interest with landlords about offering accommodation has been phenomenal, but it will be a loss of properties to that council for local people.”

For help and advice about tenant eviction and collecting arrears, then Landlord Action may be able to help: