Landlords to be expected to house asylum seekers
More private landlords will be expected to house asylum seekers to fulfil Rachel Reeves's promise to end the use of migrant hotels, the Government has confirmed.
The Chancellor said at Wednesday's spending review that the Home Office would stop using hotels by 2029, saving taxpayers £1bn a year.
But experts warned the plan would pile even more pressure on the private rental sector, as asylum seekers will add to competition for places among young renters.
Government sources confirmed to The Telegraph that the phasing out of migrant hotels would mean more landlords would need to take in asylum seekers.
A source said that 'reducing the backlog is going to be a mix of ending the use of hotels as well as ramping up cheaper accommodation'. Local authorities will also be expected to pitch in.
Earlier this year, The Telegraph revealed that Serco, a private contractor working for the Home Office, was offering landlords five-year guaranteed full rent deals to house asylum seekers.
Prospective landlords were promised rent paid 'on time every month with no arrears', full repair and maintenance, free property management and utilities and council tax bills paid by Serco.
Chris Philp, the shadow home secretary, said: '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, of professional body Propertymark, said: 'The private rented sector is already under extreme pressure, with on average, seven applicants competing per available property to rent across the UK.
'As with any reforms or proposed changes that affect housing, there must be comprehensive stakeholder engagement and continuous conversation to lay down concerns and provision for future demand.'
Sir Keir Starmer committed to ending the use of hotel accommodation for asylum seekers before last year's election.
In May, the National Audit Office (NAO) said that housing for asylum seekers looked set to cost triple what had been predicted by the former Conservative government in 2019.
Contracts signed then promised £4.5bn of public money to three companies over ten years. But NAO estimates suggested this number will be closer to £15.3bn.
Housing asylum seekers in private accommodation is cheaper than using hotels – costing as little as £14 a night, compared with £145.
Latest figures show 32,345 asylum seekers were being housed temporarily in UK hotels at the end of March, down 15pc from the end of December, when the total was 38,079.
A spokesman for the Local Government Association (LGA) said: 'The announcement to close hotels during the course of this parliament is a step in the right direction.
'Councils must be fully engaged well in advance of any decisions on opening or closing asylum accommodation rather than after a decision has been made.'
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