The news comes as it was revealed that housing associations' response to appeals to form consortia with councils to receive asylum seekers has been "poor".
Under the new arrangements, all support will be made through competitive contracts which will be operational from 1 April, 2000.
Local Government Association asylum seekers unit project leader Mike Boyle stressed the Home Office was "petrified" that asylum seekers would drift back to London.
He said: "It's the greatest fear that the Home Office have that they will all migrate back into London and exacerbate what is a very difficult temporary housing situation there."
Last week it emerged that of the 3,392 Kosovans who were airlifted to the UK during the crisis, 464 left the accommodation they were sent to.
Boyle said these figures were encouraging: "Only 464 have moved on, that's a much lower rate than asylum seekers who have moved on in the past."
He warned there was nothing to stop the private sector moving in: "Dispersal will happen anyway, with or without the consortia."
Boyle said there had been a poor response from registered social landlords to appeals to provide accommodation and support for asylum seekers.
But, he said, it was crucial that RSLs were equal partners within the consortia, and suggested they could lead in some cases.
He added: "There will be four to six staff directly employed by the consortia. There is no reason why they should be local authority employees."
Source
Housing Today
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