The UK government is preparing to fund a scheme that would see asylum seekers housed in newly built or refurbished council properties, as officials look to reduce reliance on hotels and private landlords for migrant accommodation.
Around 200 local authorities have expressed interest in the program, which would provide central government funding for councils to construct new homes or bring derelict properties back into use specifically for asylum accommodation. The initiative is being positioned as a cost-cutting measure amid mounting pressure over spiraling asylum housing expenses.
Five councils have already confirmed their willingness to participate: Brighton and Hove, Hackney, Peterborough, Thanet, and Powys. Under the plan, councils would purchase or build properties, lease them to the Home Office for asylum use, and later add them to their permanent stock of social housing.
The proposals come as demand for council housing continues to outstrip supply. Official figures show that 1.3 million people were on social housing waiting lists in England last year, a three percent increase from 2023 and the highest total since 2014. At the same time, England lost 20,560 social homes in 2023–24, largely due to Right to Buy sales and demolitions.
Research has also found that England is expected to sell off more than eight times as many council homes in 2025–26 as were built the previous year, reports The Daily Mail. The expected influx of asylum seekers into council-owned housing has already drawn criticism from residents waiting years for social housing placements.
A Home Office report recently identified billions of pounds in public money spent on asylum accommodation, with local leaders arguing the current system disproportionately benefits private contractors. Contracts awarded to Serco, Clearsprings, and Mears to lease hotels and private homes between 2019 and 2029 have reportedly risen from £4.5 billion to £15.3 billion, according to National Audit Office figures.
Bella Sankey, leader of Labour-run Brighton and Hove City Council, said the existing model sees “taxpayers’ money ‘creamed off for handsome profits by private companies.'” She added, “Owning more of our own housing, housing that can be used much more flexibly in future, would be a win-win.”
The Starmer government has pledged £100 million toward the scheme, with estimates suggesting the funding could deliver around 900 new homes. Councils would also be able to purchase unsold properties in new developments where buyers have been slow to come forward.
Ministers argue the approach could reduce long-term costs while easing pressure on hotels, though concerns remain over how councils will balance asylum accommodation with existing housing obligations.
Around 200 local authorities have expressed interest in the program, which would provide central government funding for councils to construct new homes or bring derelict properties back into use specifically for asylum accommodation. The initiative is being positioned as a cost-cutting measure amid mounting pressure over spiraling asylum housing expenses.
Five councils have already confirmed their willingness to participate: Brighton and Hove, Hackney, Peterborough, Thanet, and Powys. Under the plan, councils would purchase or build properties, lease them to the Home Office for asylum use, and later add them to their permanent stock of social housing.
The proposals come as demand for council housing continues to outstrip supply. Official figures show that 1.3 million people were on social housing waiting lists in England last year, a three percent increase from 2023 and the highest total since 2014. At the same time, England lost 20,560 social homes in 2023–24, largely due to Right to Buy sales and demolitions.
Research has also found that England is expected to sell off more than eight times as many council homes in 2025–26 as were built the previous year, reports The Daily Mail. The expected influx of asylum seekers into council-owned housing has already drawn criticism from residents waiting years for social housing placements.
A Home Office report recently identified billions of pounds in public money spent on asylum accommodation, with local leaders arguing the current system disproportionately benefits private contractors. Contracts awarded to Serco, Clearsprings, and Mears to lease hotels and private homes between 2019 and 2029 have reportedly risen from £4.5 billion to £15.3 billion, according to National Audit Office figures.
Bella Sankey, leader of Labour-run Brighton and Hove City Council, said the existing model sees “taxpayers’ money ‘creamed off for handsome profits by private companies.'” She added, “Owning more of our own housing, housing that can be used much more flexibly in future, would be a win-win.”
The Starmer government has pledged £100 million toward the scheme, with estimates suggesting the funding could deliver around 900 new homes. Councils would also be able to purchase unsold properties in new developments where buyers have been slow to come forward.
Ministers argue the approach could reduce long-term costs while easing pressure on hotels, though concerns remain over how councils will balance asylum accommodation with existing housing obligations.
