A Government scheme for councils to provide 900 new homes for asylum seekers is in limbo with local authorities still waiting to hear about the funding.

Under the plan, the Government had vowed to provide town halls with funding to buy or build properties for migrants, which would be added to the country’s social housing stock.

Around 200 local authorities expressed an interest in joining Asylum Dispersal Pilots as part of the Government plan to move away from paying private contractors for taxpayer-funded migrant hotels, which between April 2024 to March 2025 cost £2.1bn.

A smaller number of councils are being chosen to take the scheme forward after £500m in Government funding was allocated for the new asylum accommodation model.

However, councils have expressed frustration at a lack of progress over the plans, which were first revealed by The i Paper last December.