Landlords are being offered rents of up to twice the market rate to house asylum seekers, prompting accusations that British families are being pushed aside under Labour. The deals, offered by accommodation provider Clearsprings Ready Homes, include three-year contracts and payments covering bills, council tax and maintenance.
One landlord in Southwark, south London, said he had been offered £4,500 a month for a three-bedroom flat to house migrants. That compares with £1,790 a month offered by Southwark Council for the same property to house social housing tenants. The landlord described the offer as "nuts", claiming he would have had to terminate his existing agreement with the council and risk leaving families homeless to take it up.
Landlord's dilemma
He told The Sun: "I already rent to Southwark Council, and they are able to offer significantly more than the local authority, which to me is bizarre."
He added: "I didn't go with them because it would have meant terminating my contract with Southwark Council and putting families at serious risk of homelessness. I am not prepared to do that."
The revelation has sparked criticism over the use of public money to secure accommodation for asylum seekers while families struggle to find affordable homes.
Political criticism
Shadow Home Secretary Chris Philp said: "It is a day of shame for Labour that hard-working Brits are being kicked out of flats so they can be let out at twice the price for illegal immigrants."
Reform UK's Robert Jenrick also criticised the arrangements, saying: "This is everything that's wrong with broken Britain."
He added: "The Government is spending millions of pounds of taxpayers' money to roll out the red carpet for illegal migrants, while leaving domestic abuse victims as afterthoughts." Mr Jenrick said a Reform government would put veterans and victims of domestic abuse first for housing.
Contract details
Clearsprings is operating under a ten-year Home Office contract worth around £7billion to house asylum seekers in southern England and Wales. It is one of three companies contracted to provide accommodation, alongside Serco and Mears Group.
The firm is responsible for housing around 30,000 migrants. A document seen by the newspaper shows Clearsprings is seeking properties in several areas, including Bedford, Southampton, the Forest of Dean, Caerphilly and Wrexham.
The company is also demanding that some properties undergo refurbishment to meet its required standards, with landlords potentially expected to redecorate homes and install new carpets.
The Southwark landlord questioned why such requirements were being imposed on accommodation for asylum seekers when local authorities were paying less for properties used by families in need. He said: "Why are these standards applying to migrants and not to families at risk of homelessness?"
Clearsprings is run by businessman Graham King, whose company reportedly made a profit of £62.6million in the year to January 2025, on turnover of almost £1.4billion.
Government response
The controversy comes as the Government attempts to reduce its reliance on hotels to accommodate asylum seekers who arrive in the UK, including those crossing the Channel in small boats. More than 220,000 migrants have arrived by small boat since 2018. Home Office officials have closed more than 100 hotels and moved residents into houses in multiple occupation and disused military sites.
The Government has defended its approach, insisting that the contracts do not mean taxpayers are automatically footing the bill for the higher rents being offered. A Home Office spokesman said: "We pay a capped and contractually agreed rate to accommodation providers. Any amount above that is covered by the contractor and not taxpayers."
The department said it was working to house asylum seekers fairly across the country and claimed it had saved taxpayers more than £1billion on asylum support since the election by closing hotels. It also said it had removed 80,000 people with no right to be in the UK since the election. Clearsprings Ready Homes and Southwark Council have been approached for comment.
