Home Secretary Shabana Mahmood has introduced new rules banning asylum seekers from being housed in new-build homes or near schools and nurseries.
The measures were brought in following a backlash over plans to house more than 80 asylum seekers in £250,000 new-build properties on a housing estate in Stoke Heath, Shropshire.
However, the Stoke Heath scheme had already been approved before the new guidance came into force, allowing the plans to proceed.
The new-build estate in the rural Shropshire village has earmarked 21 homes for asylum-seeking families.
Conservative MP Mark Pritchard has condemned the development as “completely inappropriate”.
“Stoke Heath is an isolated rural location with very few public services,” he said.
“This is the wrong location and at the wrong scale. I will fight these ill-conceived plans all the way.”
Shropshire Council has also written to the Home Secretary to formally object to the plans.
A council spokesman said: “We have written to the Home Secretary to raise our strong concerns about this location and are awaiting a response before considering any further action.”
The crackdown on migrants being housed near schools and nurseries comes amid a sharp rise in sexual offence convictions involving foreign nationals.
Ministry of Justice figures released last year showed sexual offence convictions involving foreign nationals had increased by 62 per cent over four years.
According to the figures, foreign nationals accounted for 14.1 per cent of sexual offence convictions, including rape, despite making up around 11 per cent of the population, according to the Migration Observatory.
The Government says it has made significant progress in reducing the use of asylum hotels.
As of March, 20,885 asylum seekers were being housed in hotels, down 30 per cent over the previous three months.
A further 72,768 asylum seekers were living in alternative accommodation, including houses in multiple occupation and former military sites.
Home Office Minister Alex Norris told MPs on Monday that a further 20 asylum hotels had closed, reducing the total in use to 170 from a peak of around 400.
Ms Mahmood has pledged to end the use of asylum hotels before the next general election by moving asylum seekers into dispersed accommodation and former military sites.
The backlog of initial asylum decisions also continues to fall.
At the end of March, 48,758 people were awaiting an initial decision on their asylum claim – down 55 per cent compared with a year earlier and the lowest level since September 2019.
However, more than 100,000 failed asylum seekers appealing against rejected claims remain eligible for taxpayer-funded accommodation while their cases are considered.
Shadow Home Secretary Chris Philp criticised the Government’s asylum accommodation policy.
“Illegal immigrants should not be put in brand new homes local young people couldn’t dream of affording to live in,” he said.
“Shabana Mahmood must cancel her plans. Illegal immigrants should be deported, not given free housing.”
A Home Office spokesman said: “New homes should never house asylum seekers.
“Earlier this year, the Home Secretary introduced robust processes to ensure new-build sites like Stoke Heath can never be considered again.”
