Reform UK’s HMO Crackdown: Election Gains Meet Housing Policy

Government data show 107,003 asylum seekers were supported in December 2025, representing roughly 12 % of all migrants in 2024. Applications have risen sharply since the pandemic, reaching 82,100 last year. The highest absolute numbers are in Glasgow (3,835), Birmingham (2,637) and Liverpool (2,189). Relative to population, the North and Midlands host the greatest concentrations – 26.5 asylum seekers per 10,000 people in the North West versus 7.4 in the South-East.

iNews

Following Reform UK’s control of 14 councils (including Havering, Barnsley, Sandwell, South Tyneside, St Helens, Sunderland and Wakefield), local authorities have introduced stricter HMO controls. Durham County Council imposed an Article 4 order covering the whole borough, requiring planning permission for any HMO conversion. St Helens pledged a similar order. Sandwell’s register lists 446 HMOs, 164 of which are licensed to Serco, the Home Office contractor that houses asylum seekers, while council estimates suggest over 3,000 unlicensed HMOs exist. South Tyneside’s Labour-led predecessor already required planning permission for all HMOs.

iNews

Housing experts warn that blanket restrictions could shrink the supply of affordable shared accommodation, driving up rents and increasing homelessness. Legal analysts note that revoking HMO development rights with less than a year’s notice may trigger six-figure compensation claims and prolonged tribunal disputes.

iNews

Reform leader Nigel Farage announced a pledge to deport 288,000 “illegal migrants” annually and claimed Reform-run councils could halt the housing of asylum seekers. He described forthcoming council actions as “bloody-minded” opposition to HMO planning applications. Labour’s national leadership has pledged to close all hotels used for asylum accommodation by 2029. Council leaders in Sunderland and South Tyneside have linked longer council-house waiting times to rising asylum-seeker numbers, while emphasizing that HMOs serve broader community needs.

iNews

Landlords such as Paul Preston (Chorley) argue that most HMOs cater to students and key workers, noting that “as soon as it’s out there that ‘this is going to be a migrant hotel’ it’s difficult to shake that.” Reform councillor Wendy Whittaker-Large warned that “restricting this kind of housing would be a backwards step” and could create a de-facto ban on new HMOs, leading to “more homelessness, more people turning up to councils for emergency help.” Legal partner Rosalyn Trotman warned of costly compensation, while property-sector voices such as Xavier Archbold stressed that HMOs remain a vital, cost-effective option during the cost-of-living crisis.

iNews

Council data show a substantial number of HMOs licensed to asylum-housing contractors, yet landlords contend that asylum contracts represent only a small fraction of the estimated 497,000 HMOs across England and Wales. Home Office figures confirm 73,000 asylum seekers in dispersal accommodation but do not break down how many reside in HMOs, leaving the true proportion unclear.

iNews

• “As soon as it’s out there that ‘this is going to be a migrant hotel’ it’s difficult to shake that.” — Paul Preston, HMO landlord, Chorley

iNews

• “FACT: HMOs support many people – students, key workers, and those rebuilding after tough times. They’re not just for one group.” — South Tyneside Council (social media)

iNews

• “Is it to blame for everything? No, but… asylum claims, people who are coming here or just being housed at taxpayer expense, that’s kind of a real big point of contention with residents,” — Chris Enyon, Council leader, Sunderland

iNews

• “Restricting this kind of housing would be a backwards step,” — Wendy Whittaker-Large, Reform councillor, Alsager

iNews

• “Not all HMOs are the same – asylum contracts are only a small part of it,” — Paul Preston, HMO landlord, Chorley

iNews

Reform-controlled councils plan to extend Article 4 orders and tighten HMO licensing throughout 2026, while landlord groups prepare legal challenges and seek compensation. The policy’s impact on regional housing markets will likely feature in the next round of local elections and in parliamentary scrutiny of immigration-related housing measures.

iNews