Asylum seekers to be handed new council houses

Council bosses insist that it will save money in the long term, providing better support through local services while adding flexible housing stock once the asylum backlog is cleared.

Brighton is one of the local authorities set to take part in the scheme (Image: GETTY)

Asylum seekers are set to be housed in brand-new council homes under a controversial Labour Government pilot scheme, sparking fears of public fury amid a crippling social housing crisis. The Home Office is pumping £100 million into the programme, allowing councils to build or refurbish properties specifically for asylum seekers, with around 900 new homes expected.

These properties will initially be leased back to the Home Office for the duration of the pilot before being eventually bolstered by, and integrated into, councils’ general social housing stock for the use of the wider community. Nearly 200 local authorities have expressed interest, with five Labour-led councils keen to participate, including Brighton and Hove, Hackney, Peterborough, Thanet, and Powys.

Hoxton, in the London Borough of Hackney, which is also set to participate (Image: Getty)

Bella Sankey, leader of Brighton and Hove City Council, hailed it as a “win-win”, claiming the current system sees taxpayers’ cash “creamed off for handsome profits by private companies”, according

She argued councils could overhaul asylum housing, eventually phasing out contractors like Serco, Clearsprings and Mears altogether.

The move aims to eliminate costly hotels and private rentals, where 36,000 asylum seekers are currently housed in hotels and 71,000 in dispersal accommodation (long-term housing within the community).

Contracts with private firms have ballooned from £4.5 billion to £15.3 billion, branded “chaotic” by critics. Council bosses insist that it will save money in the long term, providing better support through local services while adding flexible housing stock once the asylum backlog is cleared.

However, the plan risks exploding in Labour’s face, with 1.33 million households languishing on England’s social housing waiting lists – the highest since 2014. Critics warn it could fuel outrage, pitting asylum seekers against hard-pressed locals.

Rotherham Council leader Chris Read fears redirecting anti-migrant anger towards councils, especially after last summer’s riots. Reform UK councillor George Madgwick slammed it as “prioritising people who arrived on small boats over those born and bred here”.

Some Labour MPs back the shift for fairer distribution, insisting deprived areas shouldn’t bear the brunt due to cheaper private rents. The Home Office has insisted it was working with councils for “suitable” alternatives, vowing to close all asylum hotels.

Nevertheless, with protests raging and housing shortages biting, this pilot could ignite a fresh backlash against the Government’s migration policies.