Peterborough is facing a stark and growing housing challenge, with refugees emerging from the asylum system increasingly at risk of homelessness and rough sleeping, according to a new council report presented to councillors this month.
An annual portfolio update from Councillor Zameer Ali, Cabinet member for Communities, Poverty & Public Health, lays bare the scale of the issue, revealing how refugees granted leave to remain are falling through gaps in the national system — arriving in the city legally, but without housing, income or access to social support.
The report warns that without local intervention many would be left destitute.
“In early 2025, the team identified a growing issue with former asylum seekers leaving Home Office accommodation and not having any accommodation or onward support,” the report states. “This led to several refugees having become destitute, not able to claim benefits or find legal work and therefore at risk of rough sleeping and exploitation.”
Legal refugees, no safety net
The report makes clear that the refugees affected have entered the UK through legal routes, including the United Kingdom Resettlement Scheme, Homes for Ukraine, and the Afghan Assistance and Relocation Policy.
However, once granted refugee status, many face an abrupt cliff edge.
“Refugees leaving the Home Office asylum system have no additional rights to social housing, nor do they have any income to rent a room/house in the private housing market,” the report says.
Most are single men, meaning they are “unlikely to be found to be in priority need for statutory housing support from the council.”
In practical terms, this means people who are legally allowed to live and work in the UK can be left with no roof over their head the moment Home Office accommodation ends.
Housing crisis averted — but only just
Over the past year, council officers stepped in using limited Home Office funding to prevent a wave of homelessness among refugees.
“There are just over 200 refugees on our system that have come through the asylum route in the last year,” the report reveals. “Of these, the team have successfully assisted 51 refugees into private accommodation throughout the city who would have been rough sleeping without this support.”
That intervention largely relied on placing refugees into houses in multiple occupation (HMOs) at affordable rents — a stop‑gap solution that highlights the pressure already bearing down on Peterborough’s private rental market.
The report stresses that stable housing is not just about shelter, but about preventing wider crises.
“Providing a refugee with a sustainable place to live allows them to begin their life in the UK and… prevent crisis situations from developing or escalating which, in due course, would apply additional pressure on public services.”
Homelessness, exploitation and public pressure
The council’s warning goes beyond individual hardship. Rough sleeping, exploitation and emergency intervention all place additional strain on health services, policing and voluntary groups.
The Communities team notes that refugees without accommodation are especially vulnerable, lacking both income and support networks at the moment they are expected to integrate.
“Ongoing casework helps families to learn more about UK culture, resolve day‑to‑day problems and find employment,” the report says, underlining how housing stability underpins integration.
Without it, the consequences ripple across the city.
A wider cost‑of‑living crisis
While refugee housing emerges as one of the most urgent issues, the report places it within a broader picture of poverty and housing insecurity across Peterborough.
Since 2020, the council has relied heavily on the Household Support Fund, which provides emergency help with essentials such as food and energy bills.
“The primary objective of the fund is to provide crisis support to vulnerable households who are in the most need with the cost of essentials,” the report says, adding that it also aims to stop households “falling into, or falling further into, crisis.”
Community hubs funded through the scheme offer emergency food, advice and signposting — a lifeline increasingly used by residents under housing and financial pressure.
However, the Household Support Fund is due to end, with plans for a Crisis Resilience Fund to replace it from April 2026. Proposals are still to be agreed
Community tensions and housing myths
The report also acknowledges how housing shortages — particularly around asylum and refugee accommodation — can inflame tensions.
Council officers describe working closely with charities, faith groups and community leaders to “debunk community myths” and respond quickly to emerging concerns, including protests linked to asylum hotels.
“Maintaining strong relationships with communities across the city is essential to allow the council to respond rapidly to any emerging issue,” the report states.
This context underscores why refugee homelessness is not just a welfare issue, but one that affects cohesion and public confidence across Peterborough.
A city holding the line
Despite the pressures, the tone of the report is clear: without council action, the situation would be far worse.
Peterborough’s approach has prevented dozens of people from sleeping rough, supported refugees into learning English and employment readiness, and eased pressure on frontline services.
But the numbers tell their own story. More than 200 refugees have come through the asylum route in a single year, and only limited funding stands between stability and street homelessness.
The report will be considered on 12 March by the Economy, Inclusive Growth and Environment Scrutiny Committee
