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Landlord’s guide to housing refugees and asylum seekers

Recent statistics show that more than 117 million people around the world have been forcibly displaced, according to the United Nations High Commission for Refugees (UNHCR). As of 2025, over 36 million displaced people were considered refugees. While a number of landlords have chosen to support refugees through officially recognised community sponsorship programmes, insuring rental properties can prove difficult, but that’s where a specialist broker can help.   

We look at how renting to refugees and asylum seekers works and the implications for landlord insurance. 

03.03.26

By Clare Waring

Renting to refugees

The difference between refugees and asylum seekers 

Refugees and asylum seekers are not considered the same, although the terms are often confused and used interchangeably: 

Refugees are those who have had their claim for asylum granted by the government. The term ‘refugee’ is a legally recognised status; it means the person cannot return to their country of origin because of persecution, violence, armed conflict, or serious public disorder.  

Refugees in the UK are typically granted five years’ ‘leave to remain’ and are issued official documentation confirming this. After five years, they can apply for settlement, also known as Indefinite Leave to Remain (ILR). 

People seeking asylum (asylum seekers) have left their home country but haven’t had their asylum claim decided yet. For example, a person may enter the UK as an asylum seeker and later be granted refugee status if their claim is successful.  

 

Can private landlords house refugees and asylum seekers? 

The short answer is yes, but the route to renting to refugees and asylum seekers differs because of their respective statuses.   

Renting to people with refugee status 

People with refugee status will have documentation verifying their status. This means that private landlords can rent to them.   

In England, as with all tenants, you must also carry out a Right to Rent check; if you don’t, you face fines and even prosecution. When a prospective tenant is not a British citizen, you can ask them for a ‘share code’, which you can use to check if they can legally rent property in the UK. For more information about Right to Rent and how to check tenants, head to GOV.UK.  

If you’d prefer more support and guidance when renting to refugees, you can provide housing through an officially recognised community sponsorship programme, such as the one offered by the charity Reset – Communities for Refugees.  

Under this programme, private landlords can rent their property to a family with refugee status. Rent is usually covered by Universal Credit and can be paid directly to you. The rental amount you receive may be lower than the market rate, as it’s affected by your area’s Local Housing Allowance. But you wouldn’t need to use a letting agency, saving you those fees if you had been using one previously.  

The London Integration and Housing Pathways Service also has helpful advice for people who have successfully claimed asylum. If you’re a landlord, this may be useful for tenants with refugee status.  

Housing asylum seekers 

Housing asylum seekers is slightly trickier as their status is undecided. Technically, people seeking asylum do not have the right to rent as they do not have leave to remain. However, the Home Office can give asylum seekers ‘permission to rent’ (PTR).  

If someone is given PTR from the Home Office, landlords can use this as a ‘statutory excuse’ when a Right to Rent check is carried out. Having a statutory excuse means landlords won’t face penalties for renting to someone with no legal right to rent.  

Permission to rent can only be given by the Home Office and lasts for 12 months. Landlords also need to be aware that PTR must be in place before the start of a tenancy. 

How does the asylum housing scheme work? 

The bulk of asylum accommodation in the UK is provided by private firms awarded government contracts. Current contracts will run until 2029, with providers managing specific regions: 

Region

Accommodation provider

North-West, Midlands, East of England

Serco

South Wales

Clearsprings Group (Ready Homes)

North-East, Yorkshire and the Humber, Scotland, Northern Ireland

Mears

As a private landlord, you can rent your property to a contracted accommodation provider so that they become your tenant (rather than the person seeking asylum). This typically means agreeing to a longer lease (usually five years). These leases are often considered commercial arrangements rather than residential tenancies.   

Contracted accommodation providers are keen to work with private landlords and list benefits including: 

  • Long leases 

  • No void periods 

  • Repair and maintenance costs covered 

  • Property management and regular inspections 

However, be aware that your property is likely to face greater scrutiny, and you may need to inform your local authority.  

If you want to explore renting property to an asylum accommodation provider, you should contact them directly: 

Does housing refugees affect my landlord insurance? 

People with refugee status have the legal right to rent in the UK. Whether their status affects your landlord insurance will depend on how your insurer analyses risk. If the perceived risk is greater, this is likely to be reflected in your premium. 

Renting to people seeking asylum or to providers such as Serco, Clearsprings, or Mears often affects your landlord insurance because insurers typically view these arrangements as commercial agreements involving ‘non-standard’ tenants, which can be more legally complex. As a result, many mainstream insurers may either refuse cover or charge a much higher premium. Always check with your insurance provider to understand how renting to non-standard tenants specifically changes your policy terms and cover. 

If you want to rent property to people seeking asylum or those with refugee status, there are specialist providers that can help. As an independent broker, we can source suitable insurance for renting to non-standard tenants that covers risks including malicious damage, landlord legal expenses, and HMO liability.  

 

How much rent do landlords get paid for housing refugees and asylum seekers? 

If your tenants have their rent covered by Universal Credit, it’s likely to be slightly below market rates, as what they receive will be affected by the local housing allowance.  

If you’ve signed up with an asylum accommodation provider, you’ll agree rental payments with them directly, as technically, they are your tenant.  

‘Thank you’ payments under the Homes for Ukraine scheme 

Under the government’s Homes for Ukraine scheme, eligible hosts are entitled to ‘thank you’ payments of £350 per month, per household. Local councils can top up this payment at their discretion.  

To find out more about which hosts are eligible and how payments are made, go to: GOV.UK, paying sponsors/hosts: Homes for Ukraine. You can also explore housing Ukrainian refugees in our insurance guidance.  

Giving you the support to help others

Renting to refugees or individuals seeking asylum is an opportunity to help, but it’s important to protect your assets and investment, too. 

As an independent insurance broker, we have access to a wide range of products, so you can be confident you’ll find a policy that best fits your needs.  

Speak to us:  01603 216399

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