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The national asylum support service is paying rent on 7500 empty properties across the UK, the government has admitted.

In the House of Lords last Wednesday, regeneration minister Lord Jeff Rooker said the Home Office-run service had 鈥渢oo many鈥� empty homes under its control.

He gave the figure as 7500 homes 鈥� 70% higher than in June, when it was said to be 4400.

But the government denied that the number was as high as the 25,000 reported in The Sunday Times on 27 June.

The problem arose because NASS, which spent 拢594m in 2002/3 on renting properties from housing providers for asylum seekers to live in, set up many of its rental contracts in 2000.

A subsequent reduction in the number of asylum approvals has resulted in many homes becoming unoccupied.

It is not clear where the 7500 empty homes are but NASS has contracts with 22 providers, spread across the UK.

Yorkshire is the region with the largest number of people living in NASS-funded accommodation 鈥� 9210, according to the most recent data, which is for September 2004.

A source close to Safe Haven, a partnership of Yorkshire Housing Group and South Yorkshire Housing Association that provides homes for NASS, said: 鈥淭he approval rate for applications has dropped and NASS has an inflexible procurement model.鈥�

The source added that Safe Haven鈥檚 contract with NASS was up for renewal next April and said: 鈥淣ASS can then reshape its portfolio. Safe Haven is working with NASS to cut numbers.鈥�

It was incompetence on the part of the Home Office 鈥� it鈥檚 been lumbered with some very expensive contracts

Richard Kemp, LGA

Richard Kemp, deputy chair of the Local Government Association, said: 鈥淣ASS has become a reputable body that we can deal with, but these problems stem from five years ago when the Home Office ignored local authorities鈥� wishes to get involved.

鈥淢ost of the empty properties are in very poor condition and local authorities could have got them in good condition.

鈥淚t was gross incompetence on the part of the Home Office, which didn鈥檛 realise that you can鈥檛 micro-manage asylum from an ivory tower.

鈥淚t has been lumbered with some very expensive contracts.鈥�

Rooker told the House of Lords last week: 鈥淢any contracts were taken out five years ago 鈥� they had to be long-term, given the scale of the issue. Most will end in 2005/6.

鈥淲e need arrangements to keep some liquidity in the system.鈥�

Of NASS鈥� 22 contracts with accommodation providers, 14 will expire between March and November next year. The other eight are due to expire in 2006.

NASS now houses about 41,000 people, which is 10,000 fewer than the figure for 2003.

Asylum applications received in the third quarter of 2004 stood at 8605, a 29% decrease on that period in 2003 and 67% down on the three months in 2002.