PRS Asked to Shoulder Housing for Asylum Seekers

The UK Government’s appeal to private landlords as part of Serco’s asylum accommodation strategy reflects a pivot away from hotel use, which has drawn criticism over cost and quality. By tapping into the private rented sector (PRS), the aim is to provide more stable housing for asylum seekers—but this comes amid a backdrop of landlord discontent over regulatory pressures, rising costs, and limited incentives. Through Serco, landlords are offered guaranteed five-year full rent leases to accommodate migrants, particularly in the North West, Midlands, and East of England.

Stakeholder reaction underscores the tension between policy ambition and practical delivery. Whilst the PRS can be part of the solution, success will clearly hinge on robust

PRS asked to identify ways to help the housing shortage

infrastructure in the form of fair financial terms, clear operational guidance, and support systems for landlords and tenants alike. Without these, uptake may be low, and local housing markets could face added strain, potentially fuelling community tensions where demand for affordable housing already outstrips supply.

By way of background, Serco is a private contractor that has been involved in providing asylum accommodation and support services in the UK since 2012. Under the Asylum Accommodation and Support Services Contract (AASC), Serco manages housing and welfare support for asylum seekers in the Midlands and East of England regions. Their responsibilities include providing initial and dispersed accommodation, transportation, and connecting individuals to local services such as health, education, and welfare support.

Serco is known to manage a large property portfolio and ensuring they meet the Decent Homes Standard. Each property has an allocated housing officer and maintenance operative, with monthly inspections to address any issues or concerns. They also collaborate with local authorities and voluntary organisations to provide comprehensive support to asylum seekers.

However, Serco's involvement hasn't been without controversy. Looking back to 2019, the High Court ruled that Serco's policy of changing locks on the homes of refused asylum seekers in Scotland was lawful, leading to concerns about human rights and the role of private companies in public services. Following this, Serco lost its asylum accommodation contract for Scotland.

Landlords will need assurances to assist

The UK government has been exploring alternatives to the current outsourcing model. Angela Rayner, Deputy Prime Minister, has advocated for local councils to take over the management of asylum seeker housing to reduce reliance on hotels and improve integration and support. We know ourselves based on discussions we have had had with some local councils in Norfolk, just how difficult the housing shortage has impacted their work in trying to rehome families in the area. The Home Office is considering using break clauses in existing contracts with private companies like Serco to renegotiate or annul agreements, aiming to reduce costs and improve the accommodation system.

Despite these controversies, Serco continues to provide asylum accommodation and support services in various regions of the UK, managing a significant number of properties and co-ordinating with local services to support asylum seekers during their claims process.

With mixed reviews from private landlords, it will be interesting to see how this may unfold over time. 

We wanted to share this topic this week because if you are considering this type of contract (this is not an Assured Shorthold Tenancy), we would urge you to research what the contract will entail, take legal advice, and carefully consider what your obligations will be through the term of the contract.  It is also important to note that your insurance provider may not allow this kind of letting, or may increase your premiums, and your mortgage provider (if you have one) may also consider letting in this way a breach of your mortgage conditions (mortgage lenders often very clearly stipulate how you can let a property and many exclude this type of contract).