Propertymark has urged agents to be cautious if they are considering participation in a controversial government scheme to house migrants in the private rental sector.

Over the weekend The Daily Telegraph revealed that Serco, a private contractor working for the Home Office, is hosting an event in May open to landlords, property investors and letting agents who have properties in the Midlands, north west and east of England.

A Serco website headlined Calling All Landlords says: “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 HMO’s, family property, former carehome, residential and student accommodation.”

Serco then gives a telephone number and online form for agents or landlords to seek more details.

Now Propertymark has responded urging caution.

It says: “For letting and managing agents, there are immediate considerations. Working with asylum housing schemes could open new opportunities for property management contracts, particularly where councils or agencies like Serco require professional management services. However, agents must ensure that properties meet the required standards, that tenancy arrangements are clearly defined, and that appropriate insurance and compliance measures are in place.

“It is important to note that participation in schemes like Serco’s involves working under specific service agreements, rather than traditional tenancy contracts. Agents must carefully review contractual terms and ensure that landlords understand the differences, particularly around rent guarantees, maintenance responsibilities, and tenant support services.

“Property professionals considering involvement in a scheme should seek advice where needed and ensure that any decision is made with a full understanding of the operational and financial implications. We welcome feedback from agents who may already be engaging with these schemes.”

The trade body adds that such reliance on the private rental sector is not new following decades of under-investment in social housing solutions.