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Luigi Newton and Paul Carroll. (Image: Instagram)
Property owners renting homes to the Home Office for asylum seekers are boasting about their guaranteed taxpayer income on platforms like TikTok and YouTube, often from luxury locations such as Dubai. Luigi Newton, a 30-year-old property investor based in Dubai, manages a £7 million portfolio of 31 UK properties.
Seven of these houses in Nottinghamshire are leased to Serco, a Government contractor, to house asylum seekers. In social media videos, Mr Newton describes the income as "fully passive" and "Government-backed", highlighting the lack of tenant management responsibilities. One TikTok post, seen by thousands, includes the comment: "No late-night tenant calls, no endless viewings, no hassle. Just Government-backed income dropping in every month."
Luigi Newton lives in Dubai. (Image: Instagram)
He has also said the Serco arrangement pays "quite well", slightly below market rates but more reliable than standard rentals, especially in areas with lower property costs.
In Lancashire, Paul Carroll, a property developer who has converted 50 houses of multiple occupation (HMOs), promotes comparable arrangements on YouTube.
He advises targeting "social housing" contracts, including those for asylum seekers, to achieve "totally passive income". For a five-bed HMO in Chorley recently leased to Clearsprings Ready Homes, Mr Carroll expects £1,100 per month over seven years.
Speaking on YouTube, Mr Carroll said: "That’ll just be gone for seven years. That’s the last I will see of that house. And I’ll just take that money again and just keep on doing it."
He has urged investors to pursue such schemes as private rental regulations tighten.
Paul Carroll, in Lancashire. (Image: Instagram/paulcarroll_propertywiz)
The Home Office's outsourcing of asylum accommodation to firms including Serco, Clearsprings Ready Homes and Mears Group dates back to the Immigration and Asylum Act 1999.
This dispersal approach, aimed at reducing hotel use, currently accommodates 66,683 asylum seekers in community-based settings as of March 2025. The overall system costs taxpayers around £4 billion each year, with hotel expenditure reduced by £1.2 billion since 2024.
Serco runs a "Calling All Landlords" campaign, offering multi-year leases that include maintenance and utilities, ensuring steady returns for owners.
With new protections for private renters—such as limits on evictions—investors including Mr Newton and Mr Carroll view these contracts as a more secure option.
Mr Newton, who operates the High Performance Academy mentoring service, told The Times that the housing market favours tenants who "abuse" it, pushing landlords towards alternatives.
Most of his properties are let to social housing providers, and he said he feels "proud" to assist those in need, despite claimed to face online abuse including racist remarks.
Nevertheless, during a visit to two of Mr Newton's HMOs in Somercotes, Derbyshire, neighbours voiced their concerns. They cited incidents of street fights involving occupants and frequent changes in male residents.
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One resident, who spoke anonymously, said: "Local families could use that. There’s people with lots of kids who could have that. It doesn’t really seem fair him getting rich out of this."
Mr Newton countered that the neighbourhood faces "serious social issues and high levels of crime", with break-ins occurring before the leases began. He added that the properties "will never make me rich".
Chris Murray, the Labour MP for Edinburgh East and Musselburgh and a member of the home affairs select committee, said the landlords' online promotions were "boiling the blood".
He described the setup as "disastrous for the taxpayer" and a "scandal" stemming from the previous administration, calling for an urgent review.
Marley Morris, associate director for migration at the Institute for Public Policy Research (IPPR), stated that such examples underscore the urgency of reform.
He suggested providing capital subsidies to councils and housing associations for purchasing properties, which could serve temporary asylum needs before joining the wider social housing pool.
The clustering of HMOs in lower-income areas has drawn warnings of heightened community friction and reduced availability in the private rental sector. Some local authorities are applying section 4 powers to restrict further HMO developments.
Serco and Mears Group confirmed that all accommodation complies with Government standards and is let at prevailing local rates. Mears noted: "We work directly with landlords and do not pay premiums." Clearsprings Ready Homes described its operations as "resident-centred" and delivering value for money.
A Home Office spokesman said: “The Government inherited a broken asylum system, with tens of thousands stuck in hotels. In the last year, we have cut nearly £1 billion in hotel spending.
"We are now committed to closing all asylum hotels by the end of this Parliament and are exploring large Ministry of Defence sites.”
Express.co.uk has contacted Mr Carroll, Mr Newton and Clearsprings for comment.
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