Burnham Government Weighs Rent Cap Increases to Disperse Asylum Seekers
Policy shift aims for fairer national distribution of accommodation, though critics warn of increased costs and charities demand stronger local council leadership
The UK government is considering raising rent caps for private landlords to facilitate the dispersal of asylum seekers across the country, a move designed to reduce reliance on expensive hotel accommodation. Under Prime Minister Andy Burnham’s plan, the policy aims to ensure a fairer national distribution of support, preventing accommodation from being concentrated in the cheapest, most deprived areas.
Officials believe it may be necessary to increase the strict caps on how much the Home Office can pay landlords to ensure properties are not limited to low-cost locations. The shift towards private rental accommodation and former military barracks is viewed as cheaper than the hotel stays that previously dominated the system. A Downing Street source identified reducing the overall need for accommodation as the government’s biggest priority.
Government sources claim the shift away from hotels has already saved £1bn since the general election. Hotel use has fallen from a peak of 400 sites, costing £9m a day, to fewer than 160 sites today. This represents a 35% drop over the past year and a 63% decline from the 2023 peak, with the number of hotels in use falling from 213 in July 2024 to the current figure.
Refugee charities broadly support the principle of dispersal but emphasise the need for adequate local support services. Imran Hussain, director of external affairs at the Refugee Council, stated that local authorities should take the lead on asylum accommodation, citing poor-quality decision-making by the Home Office as a cause for prolonged stays in the system. He argued that councils must be given the powers and resources to provide housing and support services, ensuring people are not sent to places without established refugee communities.
Critics argue the move may increase costs. Conservative MP Joe Robertson described the proposal as a self-serving political choice that would cost more than cost-effective accommodation. However, IPPR researcher Marley Morris noted that former immigration minister Robert Jenrick pursued similar dispersal policies under the last Conservative government, arguing they are cheaper due to reduced hotel use. The government maintains that the aim is to ensure no single area carries a disproportionate burden, rather than decisions being driven solely by cost.
