Residents across five towns have been left furious after their councils signed up for a scheme that would convert local properties into temporary housing for asylum seekers.

Thanet District Council has now joined four others, Peterborough, Brighton and Hove, Hackney, and Powys, for the scheme which would see councils buy existing properties, or refurbish derelict ones, to house asylum seekers previously living in hotels.

The Home Office has currently earmarked £100million for the voluntary scheme, with a Government spokesman insisting new council housing “will not be used by asylum seekers under any circumstances.”

However, residents have expressed concern about the scheme, with some accusing the Home Office of being “unfair”.

Peterborough resident Debbie Linnanee said there are now “too many [asylum seekers]” in her hometown.

The 68-year-old told MailOnline: “They get lumbered here. It is a difficult call. If you put them in housing, then there are other people on the list. They can be on there much longer than three years. At least with the hotels, we know where everybody is. Some people integrate okay, everyone is different.

“I live next door to a lovely Bulgarian with children, who works very hard and we like each other. But they work, and that is the difference. It is the people who are not contributing and adding to the welfare costs.”

Fellow resident of the Cambridgeshire city Sue Betty said the decision to house asylum seekers in council housing penalised those who had spent a long time on waiting lists, adding: “We have got a lot here…I think it’s all very unfair, end of story.”

Over in Margate, Charles, 68, who owns a second-hand furniture store in the Kent town, was also against the scheme.

He said: “I think it’s wrong, because people who have lived here for years have been on the list for a long time and they should be put first. Private accommodation is too expensive for a lot of people.”

Tony, a 52-year-old firefighter, added: “It’s just very difficult, isn’t it. You’ve got a lot of everybody with no housing, but everyone should be looked after. It’s now more beneficial to sit at home with three kids and not work.

“We get no help, whereas single parents with three or four kids take what I take and probably half again.”

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In Brighton and Hove, councillors were split over the scheme.

Labour councillor and leader of Brighton and Hove Council Bella Sankey said the funding would help local authorities invest in housing and revive disused sites.

She told ITV News: “From my perspective it’s incredibly important that local authorities are empowered to invest in their housing stock. That will ultimately be a good thing for local resident populations who are in need of housing and for people seeking asylum as well.”

However, Conservative Councillor Alistair McNair said: “This is another way of attracting more illegal immigrants to the country, if they know they’re going to be put up in nice accommodation…We need to have policies in place to stop illegal immigrants coming here.”

Last year, 1.3 million people were on social housing waiting lists across England, marking a three per cent increase on 2023 and the highest number since 2014.

Conservative Mayor of Cambridgeshire and Peterborough Paul Bristow said people in the area would be “incandescent” after hearing of Labour’s new policy.

He said: “I get hundreds of emails from people who need access to council housing. We have more asylum seekers than any other place in the East of England. We are a generous city.

“Local people often live in sub-standard, cramped accommodation. To do this [implement the policy] would be morally unacceptable.”

A Government spokesman said: “New council housing will not be used by asylum seekers under any circumstances. Asylum seekers are not eligible for social housing.

“This Government will close every asylum hotel. Work is well underway, with military sites being brought forward to ease pressure on communities and cut asylum costs.”

A spokesman from Thanet District Council, which includes Margate, said: “Thanet District Council has submitted an Expression of Interest for Round 4 of the Local Authority Housing Fund (LAHF). Once we know the terms of the pilot, which is separate from the LAHF, we will decide whether to take part.”

Labour Councillor Zameer Ali, Cabinet Member for Communities, Poverty and Public Health, said Peterborough already “does more than its capacity”.

He added: “We have expressed an interest in hearing more about pilot projects being considered by the Government in relation to how the country manages asylum seekers, but as yet there is no commitment for us to take part.

“No pilot is underway in Peterborough. The Government is committed to cleaning up the asylum mess, but that does not mean treating existing residents unfairly.”