The government confirmed that more private landlords are expected to accommodate asylum seekers in order to meet Rachel Reeves’ commitment to end the immigration hotel.
The Prime Minister said in a spending review on Wednesday that the Home Office would stop using hotels in 2029, saving £1 billion a year in taxpayers.
But experts warn that the plan will put more pressure on the private rental sector as asylum seekers will increase competition among young renters.
Government sources confirmed in a telegram that elimination from immigrant hotels would mean more landlords need to recruit asylum seekers.
“Reducing the backlog will be a mix that ends use of hotels and strengthens cheaper accommodation,” one source said. Local authorities will also be expected.
Earlier this year, the Telegraph revealed that Serco, a private contractor working in the Home Office, was offering landlords a full rent transaction of five years guaranteed for residents to seek asylum.
The promised landlord is promised “no monthly debt owes”, full repair and maintenance, free property management, and utility and council tax bills.
Chris Philp, Secretary of Shadow Internal [Labour] Will reduce the backlog of asylum claims – immigrants still need a place to stay.
“As experts warn that the government will not be able to achieve its goal of 1.5 million new homes, the British people must first obtain housing.
“The illegal immigrants in the apartment occupy the precious space our own young people need.”
Nathan Emerson of Professional Body Propertymark said: “The private rental sector is already under great pressure, with an average of seven applicants competing for every available property that rents in the UK.
“As with any reform or proposed changes that affect housing, a comprehensive stakeholder engagement and ongoing dialogue is required to present attention and provision for future needs.”
Sir Keir Starmer promised to end the use of hotel accommodation for asylum seekers before last year's general election.
In May, the National Audit Office (NAO) said that asylum seekers would appear to cost three times the cost, which the former Conservative government predicted in 2019.
The contract then signed £4.5 billion in public funds to the three companies over a decade. But NAO's estimates suggest that the figure will be close to £15.3 billion.
Housing asylum seekers in private accommodation are cheaper than using a hotel – as low as £14 per night, while £145.
The latest figures show that at the end of March, from the end of December, a total of 38,079 declines were 32,345 asylum seekers.
A spokesman for the Local Government Association (LGA) said: “The announcement of closure of hotels during Parliament is a step in the right direction.
“The Council must be fully involved before any decision to open or close the shelter, not after the decision is made.”
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