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Asylum seeker housing provider fined £10,000 over mismanaged HMO

coventry hmo fine

A company tasked with housing asylum seekers by the Government has received a £10,000 fine for ‘serious breaches’ of housing regulations at an HMO in Coventry.

Serco has a ten-year, £1.9 billion contract with the UK government to provide housing and support for asylum seekers in the community while they await news on their immigration status.

Many of these asylum seekers are housed within a large portfolio of HMOs it manages across the nation which it says is the ‘cheapest way’ to provide accommodation for them.

But the management of one of these properties has now got Serco into hot water after enforcement action was taken under the Housing Act 2004, following inspections revealed multiple failings in the management of property in the city centre.

Officers found the property to be in a state of neglect, with conditions falling far below acceptable standards.

The council says that despite representations from SERCO’s legal team, the Council upheld its decision and issued three final penalty notices under Section 234 of the Act. The fines have been calculated to reflect the severity of the offences and the company’s financial standing.

Clear message

Councillor Abdul Salam Khan (pictured), Coventry’s Cabinet Member for Policing and Equalities, says: “This case sends a clear message that Coventry will not tolerate poor housing conditions, especially where vulnerable residents are concerned.

“The scale of the mismanagement uncovered was unacceptable, and the fines imposed reflect our commitment to holding housing providers to account. We expect all landlords and agents—regardless of size—to meet their legal obligations and provide safe, decent accommodation.”

This national Serco deal was first revealed in 2022. The company offers private landlords a five-year lease with no void periods, regular rent payments without arrears, free repairs and maintenance, full HMO and property management costs as well as covering tenants' council tax and bills while the asylum seekers' claims are being processed.

This deal, although ongoing for at least three years now, caused controversy earlier this year when it was claimed incorrectly that the initiative was initiated by the current Labour Government, when it was first introduced by the previous Conservative one.

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