Landlords in parts of England are being offered five-year ‘full rent’ agreements to provide homes for asylum seekers, according to a new report. In a move that could offer a welcome income stream for property owners, Serco — a private contractor working on behalf of the Home Office — is seeking landlords, investors and agents with suitable properties in the Midlands, North West, and East of England.
The initiative, revealed by The Daily Telegraph, aims to help meet the growing demand for housing migrants, at a time when many landlords are weighing up their options under increasingly burdensome regulations.
Serco invites landlords to lease properties under long-term agreements
Through a dedicated online platform headlined Calling All Landlords, Serco has outlined its offer: “Our purpose is the provision of accommodation, transportation and subsistence payments for asylum seekers whilst their claims are being processed. We are responsible for over 30,000 asylum seekers in an ever-growing portfolio of more than 7,000 properties.”
“Our operating model is based on leasing properties from a wide network of landlords, investors and agents with Serco acting as a tenant. We want to work with you and will consider all types of properties in the North West, Midlands or East of England. These include traditional HMOs, family property, former care homes, residential and student accommodation.”
Landlords interested in participating are encouraged to complete an online form or contact Serco directly for more information. Unlike conventional lettings, the scheme offers the advantage of guaranteed rent for a substantial five-year period — something that may appeal to landlords seeking stability in an otherwise volatile rental market.
Context: A shifting market for landlords
This development comes as many private landlords are reassessing their portfolios, citing growing concerns over the forthcoming Renters’ Rights Bill. The legislation, widely criticised by landlord groups, is seen as contributing to a shrinking private rental sector, as more landlords choose to exit before additional regulations take hold.
The Telegraph’s report notes that accommodating migrants in private rented homes could cost the government as little as £34 per night, compared to an estimated £145 per night for hotel accommodation. As the weather improves and the number of ‘small boat’ crossings is expected to increase, the pressure to secure long-term housing solutions is mounting.
From a business perspective, the Serco deal offers a rare opportunity for landlords to secure predictable, government-backed rental income, potentially sidestepping the uncertainties associated with private tenants and looming legislative changes.
A practical opportunity in a challenging landscape
At a time when many landlords feel squeezed between rising regulatory costs and political rhetoric, schemes like this could offer a practical and profitable solution. Guaranteed rents, long-term contracts, and a straightforward tenant arrangement through a reputable contractor make this an option worth serious consideration.
While some landlords may have reservations about leasing to asylum seekers, others will view this as a timely opportunity to diversify their portfolios and maintain steady cash flow. With the rental market undergoing rapid change, flexibility and innovation may well be the key to long-term success in today’s property landscape.
As ever, landlords are encouraged to carry out full due diligence — but the chance to secure five years of guaranteed rent in one of the most uncertain property environments for decades is not to be overlooked.
