Councillor Peter Marland told MKFM that the City Council has been 'outbid' by a company contracted by the Home Office to supply accommodation for asylum seekers.
The City Council leader explained that when families or individuals are granted asylum refugee status, the local authority then has a housing duty to them if they're unable to find a property in the time frame given them before they're moved out of their Home Office funded accommodation.
However, the City Council has been 'outbid' on flats in Milton Keynes by a Home Office contracted company.
"Ironically, we're not just competing against people who want to rent in the private sector. Recently, the council tried to buy some flats on Hornbeam in Netherfield, the housing association put those flats on the market, we [the council] tried to buy them to add to our housing stock, but we were outbid by a government company who have been given a long term contract to house Asylum Seekers, but can offer far more money in terms of purchasing price.
"We offered the asking price and this company, called Clearsprings, offered more money than we were able to offer."
He said they were 'gazumped ironically' by a company funded by the government.
Clearsprings Ready Homes provides housing services primarily for the Home Office. The company has been providing short term ‘ready to move into homes’ since 2000.
Back in June, the BBC reported that the Home Office had been accused of leaving people homeless by outbidding councils.
With the Home Office under pressure to cut the costs or keeping asylum seekers housed in hotels, its contractor Clearsprings is trying to accommodate them.
Councillor Peter Marland said it means asylum seekers are being moved into properties "funded in competition with people in Milton Keynes."
He added: "I don't have a problem with that."
"Milton Keynes is a place that lots of people have come over the years and made a new life for themselves but in general, it is about taking the council's fair share, and we've taken more than our fair share, we continue to find people homes but it is not fair that other places, particularly places quite nearby, are not taking any," the City Council Leader added.
MKFM has contacted Clearsprings for a comment.
