DUP Communities minister Gordon Lyons held a meeting with a Home Office contractor which organises accommodation for asylum seekers to “express concerns” about its impact on the local housing market.
The minister responsible for housing met with representatives from Mears Group at his request in September of last year in order to raise his concerns on the “potential impact” of the contracts.
Migrants arriving to the UK seeking asylum are placed into accommodation by the Home Office, with the majority placed in Houses of Multiple Occupation (HMOs), while others are placed in temporary accommodation and hotels.
Mears has the contract to house asylum seekers in the north worth an expected £400 million over 10 years.
In response to an Assembly Question from fellow DUP MLA Jonathan Buckley asking whether his department has made an assessment of the potential impact of asylum accommodation contracts on the private rented housing market, Mr Lyons admitted that no formal assessment had been done, but that he had raised concerns with Mears in any case during a meeting last year.
“In September I met with the Regional Head of Operations and Chief Strategy Officer of Mears,” the minister said.
“During that meeting I expressed my concerns regarding the impacts their contracts are having on the local housing market.
“My Department has not undertaken a formal assessment however, all available evidence indicates that the private rented sector is already under significant pressure, therefore any additional demand will further exacerbate existing supply challenges.”
The Department for Communities confirmed that the minister had requested the meeting with the contractor “to understand how Mears operated locally, particularly the scale of operations”.
When asked by The Irish News to provide evidence of the impact of asylum seeker accommodation on the local housing market, a spokesperson said: “The Department is aware of the significant demand for social housing and private rented accommodation and recognises any additional demand will further exacerbate existing supply challenges.”
Overall, the number of asylum seekers has dropped from 3,220 in September 2023 to 2,535 in June 2025. Proportionally, the north has among the smallest number among the regions of the UK.
The Home Office has said the expected cost of housing asylum seekers in Northern Ireland has quadrupled to £400m.
A report from the UK’s National Audit Office released the figures in a review of asylum accommodation contracts across the UK.
Accommodation for asylum seekers is funded directly by the Home Office, which has a legal duty to support people as they assess their claim for asylum.