Labour has indicated that private landlords will need to play a more active role in housing migrants, according to a report by the Daily Telegraph.
This move forms part of Labour’s wider strategy to reduce reliance on migrant hotels. The party has pledged to phase out their use, with the aim of saving the public around £1 billion each year—a commitment highlighted in the recent Spending Review.
Currently, the government is spending approximately £145 per night per asylum seeker to house them in hotels. In comparison, placing them in private rented homes costs significantly less—around £14 per night.
Shifting towards private accommodation is seen as a way to ease the financial strain on taxpayers, particularly as the pressure on public funds continues to grow.
However, concerns have been raised about the broader impact this shift may have on the rental sector.
Critics argue that increasing the use of privately rented homes for asylum seekers could intensify competition for housing in an already tight market.
With many renters already struggling to secure affordable homes, some fear this policy could worsen availability and drive up demand.
Landlords may be encouraged with financial incentives to participate, but housing campaigners say the government must ensure that existing tenants are not pushed out in the process.
Others warn that without proper regulation, standards in migrant housing could be compromised to meet demand quickly.
The plan is expected to be rolled out gradually, with local councils working alongside private landlords to identify suitable properties.
Labour insists the strategy is about long-term savings and improving conditions for those seeking asylum.
But balancing the needs of migrants and the pressures facing renters will be a challenge that the government must carefully manage moving forward.
Backlog of asylum claims
Chris Philp, the Shadow Home Secretary, has raised concerns about Labour’s plans to accommodate migrants in private rental homes. Speaking to the Telegraph, he argued that even if Labour manages to reduce the backlog of asylum claims, housing will still be required for those awaiting decisions.
Philp questioned the feasibility of Labour’s approach, especially given the ongoing challenges in the housing sector. He pointed out that with the government falling short of its 1.5 million new homes target, it’s essential that housing priority is given to British citizens.
He expressed particular concern about the impact on younger generations. “Providing flats to illegal immigrants takes away space that our young people desperately need,” he said, highlighting what he sees as a growing imbalance in housing access.
Adding to these concerns, Nathan Emerson, Chief Executive of Propertymark, also commented on the pressure within the private rented sector. He stated that competition for rental homes remains intense.
According to Emerson, on average, there are around seven applicants for every property available on the market. This means that demand continues to outpace supply, leaving many tenants struggling to secure a place to live.
He emphasised that introducing more tenants into an already overstretched market could lead to even greater challenges for existing renters.
There is a growing call for the government to carefully consider how such policies will affect the wider population, particularly those already facing affordability issues.
As the debate continues, housing experts and landlords alike are urging for a balanced approach that meets both humanitarian needs and protects the interests of local renters.
The proposal to involve private landlords in housing migrants has sparked a mixed response, with questions being raised about long-term sustainability.
As housing remains a top issue for voters, the government will be under pressure to show how it plans to manage demand fairly across all communities.
Serco among PRS contractors
In recent months, there have been reports highlighting the Home Office’s efforts to boost the availability of private rental sector (PRS) homes for asylum seekers.
According to updates shared by Property118, the government is working with three key contractors to help expand housing options. One of these is Serco, which has introduced attractive offers for landlords.
Serco is reportedly offering landlords five-year guaranteed rental contracts. These deals include full rent payments made on time and come with the added benefit of free property management services.
In addition to rent, other major costs such as property repairs, utility bills, and council tax are also covered under the arrangement. This setup is intended to ease the financial burden on landlords while increasing housing stock for asylum seekers.
The National Audit Office recently disclosed that the cost of housing asylum seekers could climb to £15.3 billion. This figure is significantly higher than the £4.5 billion initially projected by the previous Conservative government back in 2019.
Despite a 15% decrease in the use of hotels—from 38,079 asylum seekers in December to 32,345 by March—the financial implications remain a serious concern.
The Local Government Association has voiced its support for the plan to phase out hotel accommodation. However, it emphasised the importance of involving local councils from the early stages of implementation.
This move is seen as crucial for ensuring housing placements are well-coordinated and do not create additional pressure on local housing markets.
Prime Minister Keir Starmer had previously pledged to end the use of hotels for housing asylum seekers during his election campaign.
Now, as the government works to deliver on that promise, it faces growing pressure to strike a balance between meeting its commitments and managing housing demand nationwide.
The approach to partnering with landlords may offer a more sustainable long-term solution, but it also raises questions about competition within the already stretched rental sector.
As the policy takes shape, both local authorities and housing providers will be watching closely to see how the government handles the challenges ahead.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property