Landlords are watching closely as government asylum housing policy collides with planning law, after a High Court injunction blocked asylum seekers being placed in a hotel in Epping. With ministers under pressure to reduce hotel use, concern is growing that Houses in Multiple Occupation (HMOs) in the private rental sector could become the next target for dispersal.
Planning law puts hotel use under scrutiny
The ruling against using The Bell Hotel in Epping hinged on planning regulations. Hotels fall under the C1 Use Class, designed for short-term stays, not long-term accommodation.
Faraz Baber, chief operating officer of planning consultancy Lanpro, explained: “In theory such change is possible. In practice, it is a lengthy and contentious process. Applications can take months to progress and in cases involving asylum accommodation, public objection is virtually guaranteed. What was once a local dispute risks becoming a national planning flashpoint.”
With many other hotels across England currently housing asylum seekers, landlords argue the case highlights the inconsistency of relying on temporary measures instead of addressing long-term housing supply.
HMOs tipped as alternative but landlords raise concerns
One option floated is dispersing asylum seekers into HMOs. But this raises fresh challenges for the private rented sector. Baber warned: “That can create more disruption, not less, and presents significant challenges for local authorities trying to manage both housing needs and community cohesion.”
Landlords fear that forced dispersal into HMOs could undermine their ability to manage tenancies effectively, while also risking community backlash.
At the same time, guaranteed long-term government-backed tenancies could tempt some landlords who are otherwise weighing up an exit from the sector. Baber pointed out: “With many private landlords considering exiting the sector, the prospect of guaranteed long term tenancies funded by government could be attractive. This creates the risk that the shortage of rental supply becomes entangled with the pressures of asylum accommodation.”
Renters Rights Bill adds further uncertainty
The issue comes just as the Renters Rights Bill edges closer to becoming law. Landlord groups warn that piling additional asylum pressures on top of planned tenancy reforms risks destabilising the rental market further.
The National Residential Landlords Association (NRLA) has consistently argued that government policy must not deter investment in the sector. In a recent statement, chief executive Ben Beadle stressed that “landlords need clarity and confidence to continue providing homes across the UK. Political short-termism that undermines investment will only deepen the rental crisis.”
Baber suggests the only real way forward may be reform of planning law itself. He said: “The Secretary of State – Angela Rayner – could move to amend the Use Class Order to allow hotels (C1) to be used for longer stays without requiring a change of use. That would provide clarity and consistency for local authorities and operators alike.”
Editor’s view
For landlords, the asylum accommodation row is more than just a planning battle—it’s a reminder of how quickly government policy can spill over into the private rental sector. If HMOs become the fallback option, investor confidence could be shaken at a time when housing supply is already fragile.
The question is whether ministers will take a joined-up approach that protects landlord investment while meeting social obligations. Without that balance, landlords may find themselves yet again bearing the brunt of policy experiments not of their making.
