How Will the New Labour Government Transform the UK Housing Market?

How Will the New Labour Government Transform the UK Housing Market?

What will this mean for Landlords and Tenants?

The election of a new Labour government, and Prime Minister Sir Kier Starmer, brings a wave of anticipation and uncertainty, particularly regarding the UK housing market and the buy-to-let property sector. As Labour's policies start to unfold, both landlords and tenants are keen to understand the potential impacts.

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Labour's Housing Policies

Labour has long championed affordable housing and tenant rights. Their manifesto includes ambitious plans to build 1.5 million new homes over the current parliament, introduce rent controls, and increase ‘protections’ for tenants. This could significantly shift the landscape for both homeowners and the buy-to-let market.

The Renters Reform Bill will be resurrected and will almost certainly include an end to Section 21 ‘no fault’ evictions and more ‘secure’ tenancies.

Impact on the Housing Market

1. Increased Housing Supply: Labour's pledge to build more homes aims to address the chronic housing shortage. This could stabilize or even reduce house prices, making it easier for first-time buyers to enter the market.  

2. Affordability: By increasing housing supply, Labour hopes to make homes more affordable. This is particularly beneficial for young people and families currently priced out of the market.

Effects on the Buy-to-Let Market

1. Rent Controls: One of the most talked-about Labour policies is the introduction of rent controls. While this aims to protect tenants from excessive rent hikes, landlords might see a cap on their rental income, potentially reducing the profitability of buy-to-let investments.  

2. Tenant Protections: Enhanced tenant protections could include longer tenancies and restrictions on eviction procedures. This provides tenants with greater security but might limit landlords' flexibility in managing their properties and will be a challenge to small landlords.

3. Tax Changes: Labour has suggested revisiting tax reliefs available to landlords. Possible reductions in tax incentives could discourage new buy-to-let investments and prompt some landlords to sell their properties.

What This Means for Landlords

Landlords might face increased regulation and potentially lower returns on their investments. It is crucial for landlords to stay informed about new policies and consider strategies to adapt, such as focusing on property quality and location to attract long-term tenants.

What This Means for Tenants

Tenants are likely to benefit from increased protections and potentially lower rents. Labour's policies aim to create a fairer rental market, offering tenants more stability and affordability.

Immigration

The new Prime Minister has promised to deal with the “small boats” illegal immigration, as well the “processing” the huge backlog of asylum cases. He refused to say what he means by “processing” applications, but it will probably involve some kind of an amnesty or “legacy” scheme as implemented by the Blair government.

In practice, hundreds of thousands of migrants will be granted leave to remain whether or not the arrived in the UK legally. This means asylum seekers will be able to work and could see an end to temporary housing and hotel accommodation.

Conclusion

Prime Minister Sir Kier Starmer’s Labour government’s policies are set to bring significant changes to the UK housing market and the buy-to-let sector. While tenants stand to gain from greater protections and affordability, landlords may need to navigate tighter regulations and potentially lower profits. Staying informed and adaptable will be key for all parties involved.

Understanding these potential changes is crucial for navigating the evolving landscape of the UK housing market. Stay tuned for more insights and expert advice on how to manage your property investments under the new Labour government.

Section 24 Landlord Tax Hike

Interview with Chartered Accountant and property tax specialist who reveals options and solutions to move your properties from your own name into a limited company or LLP whilst mitigating the potential HMRC pitfalls.

Email charles@charleskelly.net for a free consultation on how to deal with Section 24.

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UK Illegal Migration Bill Becomes Law

 

The controversial Illegal Migration Bill has become law as the government prevailed over strong opposition in the Lords and figures show the number of migrants crossing the English Channel this year exceeded 14,000.

The asylum reforms form a major part of Prime Minister Rishi Sunak's promise to "stop the boats” and will prevent migrants from claiming asylum in the UK if they have arrived here illegally.

The disputed Bill became an Act of Parliament on Thursday after receiving Royal Assent, the same day it was revealed that 14,701 Channel illegal boat crossings have been made so far this year.

The government are hoping the new law will see detained people removed without delay, to their home country or a safe third country.

The Home Office is locked in a legal battle with the Supreme Court which will decide whether migrants can legally be deported to Rwanda, following a Court of Appeal ruling the plan unlawful.

Although there are details yet to be ironed out, this week, "people who arrive illegally under the new laws will be banned from re-entering the UK and will not be eligible for settlement or citizenship, except in limited circumstances," the Home Office said.

The Prime Minister and the Home Secretary Suella Braverman argue that taxpayers are shouldering the £6 million daily bill for migrants to be accommodated in luxury hotels.

This week a huge barge planned to house 500 asylum seekers was met by protesters as it arrived in Dorset's Portland Port.

With a general election looming, Rishi Sunak is desperate to reduce net migration, which exceeded 1 million last year.

The Office for National Statistics (ONS) reports that in 2022: 1.2 million people migrated into the UK and 557,000 people emigrated, a net migration figure of 606,000 as of the end of June 2022.  

International students could be targeted in a bid to slash immigration by the end of the current parliament.

Unlocking Student Visa Opportunities: Study Abroad In Other Countries Amid UK Home Office Restrictions

The recent restrictions imposed by the UK Home Office on overseas students have sparked a need for alternative avenues to pursue higher education. While these restrictions may limit options for international students in the UK, it's important to recognize the wealth of opportunities that exist in other countries. In this article, we explore some countries that offer excellent education systems, welcoming environments, and promising career prospects for students seeking to broaden their horizons.

1. Canada: Known for its diverse and inclusive society, Canada has become a popular destination for international students. With top-ranked universities, affordable tuition fees, and numerous scholarship opportunities, Canada offers a welcoming environment and high-quality education across various fields.

2. Germany: Renowned for its strong engineering and technical programs, Germany offers tuition-free or low-cost education at its public universities. The country's emphasis on research and innovation, combined with a rich cultural experience, makes it an attractive choice for aspiring students.

3. Australia: With its stunning landscapes and world-class universities, Australia has long been a favourite study destination. Boasting a multicultural society and a reputation for academic excellence, Australia offers a wide range of courses and ample opportunities for international students to thrive.

4. Italy: Studying in Italy offers a unique cultural experience and access to renowned educational institutions. By following the necessary steps and preparing your application diligently, you can embark on a memorable educational journey in Italy.

Conclusion:

While the UK Home Office restrictions may limit opportunities for overseas students and their dependents, it's important to view this as an opportunity to explore other countries that offer exceptional educational experiences. Countries like Canada, Germany, Australia and Italy provide a wealth of options for students seeking high-quality education, cultural diversity, and promising career prospects. By embracing these alternatives, students can unlock a world of opportunities to broaden their horizons, acquire new skills, and make lifelong connections in global educational environments.

Want to study abroad?

If you would like to study abroad in the UK, Australia, Canada, Italy or other country, click here to leave your details.

Illegal Immigrants Can Get COVID-19 Test Without Being Deported From The UK, Home Office Confirms

Undocumented immigrants will not face removal from the UK if they register with a GP to receive a coronavirus vaccine, the Home Office said.

The amnesty potentially applies to up to 1.3 million migrants in the UK illegally, which will help build up the general population’s immunity to the virus as we start easing lockdown, the Daily Mail said.

The offer of a free ‘no questions asked’ test includes anyone who arrived in the UK illegally or has overstayed their visa.

“Coronavirus vaccines will be offered to everyone living in the UK free of charge, regardless of immigration status,” a Home Office spokeswoman said.

“Those registered with a GP are being contacted at the earliest opportunity and we are working closely with partners and external organisations to contact those who are not registered with a GP to ensure they are also offered the vaccine.”

The Daily Mail said the Home Office will take no action when an undocumented migrant registers with a GP for a vaccine. Migrants in the UK illegal fear being reported if they register with a GP, but the Mail reports that the Department of Health will not share their identities with police or immigration officers.

A Home Office spokeswoman told Yahoo News UK that all primary medical care services are available free to anyone in the country, regardless of immigration status, including COVID vaccines.

Vaccines are freely available to overseas visitors, with no immigration checks, and the Department of Health has informed NHS trusts that patients being vaccinated, tested or treated are not to be checked.

The number of undocumented migrants in the UK is impossible to accurately calculate, but research suggest the figure is above a million, according to Full Fact.

From Monday, travellers will need to carry a form before leaving the country stating that their trip is “permitted” under “stay-at-home” restrictions.

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How many illegal migrants and visa overstayers live in the UK?

The short answer is that nobody knows, even the Home Office can only estimate the number of visa overstayers, illegal entrants or undocumented migrants there are in the UK.

The Office for National Statistics (ONS) estimated migration to the UK for just one year, ending June 2016, at over 650,000. Prior to the Brexit vote, immigration from the EU was the highest on record, while immigration from non-EU countries was similar to previous years, despite measures to curb it.

In another report, it has emerged that the number of EU nurses registering to work in the UK has dropped by 90% since the Brexit vote last June.

How do we work out the number of illegal immigrants?

Illegal immigrants in the UK exist largely as an unregistered collective, according to the New Statesman, because if the registered they would risk being deported and banned from returning to the UK for many years.

The ONS said that “by its very nature it is impossible to quantify accurately the number of people who are in the country illegally.” Population Surveys or the official Census figures are based on information provided voluntarily by householders.

The last official estimate was compiled in 2005 when the government assessed methods used by other countries to estimate their level of illegal immigration, and applied the finding to the UK. They predicted the number at 430,000, but the London School of Economics produced a report in 2007 estimating the number of ‘irregular’ migrants at 533,000. 

The Home Office collect “Immigration Enforcement Data”, such as number of enforcement raids based on tip-offs, number of people refused visa entry and number of overstayers deported from the UK.

In the second quarter of 2016 there were just 941 enforcement visit arrests. However, the Migration Observatory at the University of Oxford said that 40,896 immigrants were deported in 2015, which would include migrants refused visa extensions or overstaying students.

At 40,000 removals a year it would take almost 11 years to remove all illegal immigrants based on the government’s own estimates and assuming no increase in numbers.

The ippr estimated that it would take 20 years to remove 500,000 illegal migrants at a cost of £5 billion. It costs an average of £10,000 to remove someone from the UK, so those figures are not so far fetched.

Other organisations, such as Migration Watch, estimate much higher numbers of undocumented migrants and the number could be between 750,000 and 1,000,000 people living illegally in the UK. This has prompted calls for an amnesty, which even Boris Johnson supported when he was the London Mayor.

The 2016 Immigration Act will make life harder for illegal as well as legal migrants wishing to work in the UK on a working or student visa.

Private property owning landlords can be fined up to £3000 for letting to anyone who does not have the right to reside in the UK and can face criminal charges and jail for knowingly renting to illegal immigrants.

The UK is still an attractive place to work, start a business and buy property – no restrictions on foreign buyers - a vibrant mortgage market with record low interest rates.

Learn how you can get involved in the buy-to-let boom with this free CD training programme:

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See also:

Uber offering free English courses to migrant worker drivers

EU nurses coming to the UK drops by 90% since Brexit

Immigration Act 2016 - main highlights in a nutshell

Minimum Salary for Tier 2 Work Permits to Rise to £30,000 as UK Immigration gets Tougher for Non-EU Migrants

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Voluntary Returns Service offers illegal immigrants and overstayers free flights, amnesty and way out of UK

Illegal immigrants can take advantage of an incentive scheme to leave Britain under packages, including free flights, money to start up businesses and help with finding schools for their children.

The Home Office offers failed asylum seekers and those who overstay their visa an amnesty from arrest if they attend meetings to discuss their return.

Anyone who leaves voluntarily could be allowed back into the UK in as little as two years, while those who are arrested and deported face a 10 year ban.

The Daily Mail reports that a senior immigration official has appeared on a spiritual guru’s TV show to promote the Voluntary Returns Scheme. 

Richard Lederle, leader of the South-East England immigration compliance and enforcement team, recently appeared on a cable TV show called Spiritual Live to advertise the Home Office’s new stance.

He told guru Shri RajRajeshwar Guruji: ‘We’ve changed the approach over the past six to 12 months, where we are running these surgeries within the communities to give this free advice to those who find themselves in an increasingly difficult situation and here illegally.

‘What you get with the Voluntary Returns Service is a more tailored, bespoke package specific to the individual needs of that case. That would include potential medical assistance, certainly if there’s family, and in terms of potential reintegration, we’re looking at education costs, possible work placements on return to country of origin.’

Mr Lederle added: ‘There has to be a benefit. If you’re returned through the enforced route, you face almost inevitably a ten-year return ban. The benefits could be a reduction to as little as two years. You can talk face-to-face without fear of being arrested. Let’s be absolutely clear on that point, if they are willing to turn up to those surgeries, they will not be arrested.’

While some critics argue that the generous terms of the Voluntary Returns Scheme is a bribe that sends out the message that it is acceptable to be in the UK illegally, the Home Office has little choice but to offer incentives to the estimate 1 million visa overstayers and illegal immigrants currently living in the UK. Human rights appeals can add hundreds of thousands of pounds and even millions to the final bill.

It costs the taxpayer an average of £10,000 to find and deport an illegal immigrant according to the think tank, ippr, which a few years ago estimated that it will cost £5 billion and 20 years to deport 500,000 overstayers.

   Nurses needed in the UK

One category of migrant the UK does not want to send home is nurses. The NHS and private sector are recruiting nurses now and offering working visas to candidates with ILETS 7.00 in ALL bands (no exceptions) and initial NMC registration. for further information on the NMC process see -

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Convicted Asylum seeker criminal can’t be deported - no country will have him

An asylum seeker with 14 convictions for 17 crimes cannot be deported back to his native Algeria, or anywhere else, because no other country will have him, a High Court Judge was told.

The 31-year-old Algerian repeat offender presents 'high risk of harm to the public' and has committed 'numerous criminal offences' including violent and drug crime.

Since arriving in the UK from Africa in 2003, the man has been convicted of 17 offences over a seven-year period, but has lodged a compensation claim against the UK Government claiming he has been unlawfully held in a detention centre.

High Court Judge Martin McKenna saw through his story and ruled in favour of the Home Office dismissing the claim, but had to release him from immigration detention after deportation attempts failed.

Judge McKenna said the man, who has a history of alcoholism, drug use and homelessness and cannot be named, had been born in a refugee camp in southern Algeria, claimed that he was 'stateless'.

He said Home Office staff had approached authorities in different parts of Africa - in a bid to deport - but officials abroad had refused to provide travel documents to the man.

In his ruling, Judge McKenna said: 'The claimant entered the United Kingdom in 2003 and claimed asylum in June 2003.

'In 2005 the claimant began to develop a mental health disorder. He has been treated as an inpatient in hospital since that time both on a voluntary and involuntary basis under mental health legislation.

'He has had periods when he has been drinking heavily and periods when he has been street homeless. He has had periods when he has been suicidal and periods when he has self-harmed. He has been prescribed medication for his mental health condition.'

Judge McKenna added: 'The claimant is a serial offender. Between April 7 2005 and September 10 2012 he acquired 14 convictions for 17 separate offences including attempted robbery, criminal damage, drugs and numerous convictions for shoplifting.

'He was assessed as posing a high risk of harm to the public.'

Judge McKenna said the man had subsequently been detained under immigration legislation pending deportation.

The man had claimed that he had been unlawfully detained between January and November 2015, but Home Office officials disputed his claim and said he was a 'serial absconder' and had committed 'numerous criminal offences'.

Staff said he had been held at a time where there had been a prospect of deportation - and they said reasonable deportation steps had been taken. 

The man, who has a history of mental health problems and was not named in the ruling, claimed that he had been unlawfully detained and wanted compensation from the Home Office.

Judge McKenna dismissed the compensation claim but described the man as a 'serial offender' - listing convictions for attempted robbery, criminal damage, drug crime and shoplifting - and said he had been assessed as 'posing a high risk of harm to the public'.

The Human Rights Act could be abolished and replaced by a British Bill of Rights in a move to end unpopular judgements allowing criminals and suspected terrorists to remain in the UK - typically on grounds such as the article 8 ‘right to a family life’ - thwarting Home Office efforts to deport them.

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Poland now largest group of non-UK born residents, surpassing India, but net migration figures fall

Poland has surpassed India as the most common non-UK origin of birth for people living in the UK, Office for National Statistics figures show.

The news comes as net migration (difference between the number of people coming to the UK for at least a year and those leaving) has fallen to 327,000 for the year to March. The ONS figures - for the period before Britain voted to leave the EU - are down slightly on the previous year.

Despite rumours that Poles were all going back to a booming Poland a few years ago, it is now estimated that there are 831,000 Polish-born residents in 2015 - a jump of almost 750,000 since Poland joined the EU along with other seven Eastern European countries (the ‘Accession 8’) in 2004. India and the Republic of Ireland have traditionally been the sources of the UK's largest foreign-born migrants. Irish citizens enjoyed free access to the UK, or the Common Travel Area, long before the EU.

Many of my own Irish family, along with thousands of others, came to live and work in London in the 50’s, 60’s and 70’s without a passport! There is now a surge in the number of people applying for Irish EU passport, but which country has the highest visa free access passport? Find out here.

Figures show a slight decline in the numbers settling in the UK from Poland, but the EU migration figures were offset by a massive increase in net migration from Bulgaria and Romania, which reached record levels of 60,000.

Nicola White, ONS Head of International Migration Statistics, said: "Net migration remains at record levels although the recent trend is broadly flat.

"The influx of Romanians and Bulgarians has also reached a new high, although that's off-set by falls in non-EU immigration and from other central and eastern European countries.

"Work remains the main reason for migration, followed by study which has seen a significant fall in the number of people coming to the UK for education.

"It's important to remember that these figures only go up to the end of March and do not cover the period following the UK's vote to leave the European Union."

She added the UK's population continued to increase between 2014 and 2015, driven by "significant increases in both the non-UK born and non-British national population of the UK".

ONS estimates show that 13.3% - around 1 in 7 - of the usually resident population of the UK were born abroad, compared with 8.9% in 2004.

London is the region with the highest proportion of non-UK born residents.

A quarter – 1 in 4 - of births in England and Wales in 2015 were to foreign women born outside the UK, the highest level on record, according to separate figures.

ONS statistician Elizabeth McLaren said: "The rising percentage of births to women born outside the UK is largely due to foreign born women making up an increasing share of the female population of childbearing age in England and Wales.

"Part of the reason for this is that migrants are more likely to be working-age adults rather than children or older people. Alongside their increasing share of the population, higher fertility among women born outside the UK has also had an impact."

Figures show that EU Immigration has not yet peaked and following the Brexit vote, work permits could be introduced for European migrants.

Some data from recent national insurance number (NI) registrations indicate that EU immigration may have levelled off, although  it will take six months to a year to see the effect of the referendum.

The then Labour government, famously predicted in 2004 that immigration from the new EU countries, who could only freely move to the UK, Sweden and Ireland, would peak at 13,000.

In reality, it is impossible to know how many foreign born people are living in the UK for a number of reasons.

Firstly, there is no counting-in/counting-out system covering all migrants and visitors. The Labour government spent billions on IT systems which were scrapped at the cost to the taxpayer.

Secondly, EU migrants can come and go without registering and many do not apply for an NI number, for instance, the self employed. Croatiannationals, whilst part of the EU, cannot work here or obtain an NI numberwithout permission. Like Romanians and Bulgarians before them, many survive here working in ‘cash in hand’ jobs on the black market. 

Migrants can find work here without permits as child minders (as in the case of Baroness Scotland, the Minister who help draft immigration Rules), waiters, builders and in some areas as mini cab drivers.

Finally, there is an estimated 600,000 – 1,000,000 people here illegally or overstaying their visas. Many have now had children who will eventually acquire British citizenship and will form the basis of an application to regularise the parents stay in the UK on human rights grounds. Even though the government will abolish the Human Rights Act, it is extremely unlikely that the UK will be able to find deport a million overstayers. The think tank, ippr, said it would take 20 years and £5 billion to deport 500,000 illegal immigrants.

Sir David Metcalf, the government's chief adviser on immigration controls, has indicated that Prime Minister Theresa May was considering introducing work permits for low skilled migrants from the EU. An estimated half a million EU migrants could be forced to leave the UK.

Sir David, head of the Migration Advisory Committee, told the Telegraph the scheme would be "pretty straightforward" to run and could be based on a previous work permit system for seasonal agricultural workers.

Lord Green, of the Migration Watch pressure group said: "The Brexit negotiations must achieve a significant reduction of EU migration and very firm action is needed against overstaying students from outside the EU."

The border-less digital economy has opened up thousands of opportunities to earn money, wherever you are living and regardless of your passport visa.

In fact, it has never been easier to set up an online business. I now work from home. In the past, you needed a lots of technical knowledge and skills to set up websites and marketing ability to work online. Now there are companies which do it all for you.

If you are still stuck or unable to migrate, have you considered working from home or setting up a home-based business? Anyone can now set up a home based Internet business working from home or selling goods online. Companies like Amazon, eBay and Upwork offer everyone an opportunity to earn a living and even make a fortune working from home and living the laptop lifestyle.

The internet has opened up a whole new world of learning, working, socialising and doing business. We no longer need to go back to school or university to learn new skills. We can work from home, start a business or find a new life partner all from the comfort of our home.

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Home Office raid on Byron Burger Bar unleashes social media frenzy as 35 migrant workers deported

You may have read about the recent social media fury over claims that Byron, a UK burger chain with restaurants in London and Scotland, collaborated with the Home Office to have 35 of its staff deported back to countries including Brazil, Nepal, Egypt and Albania. Byrony Gordon, writing for The Telegraph gives an interesting slant on the backlash that followed, which became Byron’s worst media nightmare.

The Home Office announced that 35 people had been arrested for immigration offences at a number of restaurants across London, and added that the operation had been carried out with the "full co-operation" of Byron earlier this month.

The story continues that the business had carried out the correct "right to work" checks on staff, but had been shown false or counterfeit documentation and as they had been able to demonstrate this they did not incur civil penalty action, the Home Office said.

In other words, by “working with” the Home Office, the company was obeying the law by allowing (they would be compelled to do anyway) the Government access to workers who had used fake documentation to obtain jobs, which in effect deprives other people (immigrants included) of work in the UK.

The Telegraph reported that Unions claimed migrant workers were ‘lured to their fates’ under false pretences – a health and safety meeting – as if these staff hadn’t themselves behaved in a similarly underhand fashion. The Unite union complained that the ‘deportees wouldn’t get redundancy’. Byrony gasps: “imagine, defrauding your employers and then not getting a pay-off when they uncover your duplicity!”

What followed after the story broke is incredible. A protest hashtag was unleashed on Twitter: #BoycottByron. Then on Friday, thousands of cockroaches and locusts were released into two of the chain’s restaurants in London.

Virtuous people on social media announced they would not be spending £8 on a burger, to show ‘solidarity’ for the deported workers. A mass protest was arranged over the weekend at the company’s Holborn branch.   

Twitter was deluged with accusations that Byron was happy to “exploit” illegal workers before throwing them to the wolves when it looked like it might get found out.

But it could also be argued that the company was merely fulfilling its legal duty by checking its workers’ documents, which it later found to be bogus. The documents fooled Byron (it is still not that easy to fully verify documents), but were obviously uncovered by the Home Office enforcement team, which has the ultimate responsibility to verify immigration status and deport illegal immigrants and visa overstayers.

If you want to avoid Home Office raids and a painful fine, make sure you follow the correct immigration document checking procedures, which you can find on the Home Office website, audit files regularly and seek advice if you are unsure.

In the meantime, there are also reports that the Cedars detention centre is to b closed by the Home Office, now under the leadership of new Home Secretary Amber Rudd, following negative reports.

NURSES WHO HAVE TRAINED OVERSEAS AND NOW WORK IN THE UK - I NEED YOUR HELP FOR A RESEARCH PROJECT

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UK visa overstayers still here despite £30 million Home Office illegal immigration crackdown

A new immigration report has slammed the Government and Home Office for failing to find and deport thousands of foreign nationals overstaying and living illegally in the UK.

The Home Office has been criticised for failing to crack down on the number of foreign nationals who have overstayed their visas in the UK.

The inspector of borders and immigration John Vine said the Government had failed to reduce the number of 'overstayers' despite a flagship Home Office scheme costing millions of pounds designed to reduce the number of illegal immigrants in the UK.

Mr Vine said the ‘immigration refusal pool’, or the numberof foreign nationals refused leave to remain in the UK after 2008, was 174,057 in June 2012.

That visa refusal figure was relatively unchanged in the same period this year and remained at 173,562.

Mr Vine said:

"Any failure to take action against foreign nationals who overstay their permission to be in the UK has the potential to undermine public confidence in immigration control."

The Home Office awarded a multi-million pound contract to outsourcing firm Capita in 2012 to review and, where possible, close the records of foreign nationals in the migration refusal pool.

But according to Mr Vine, Capita has not only failed to deliver on the Government's ambition to crack down on illegal 'overstayers' it has also overstated its successes.

The report highlights a sample of 57 migrant records closed by Capita after stating that the overstayer had left the country. Inspectors found that 16 – around one quarter - had been ‘closed in error’.

This would amount to 1,140 records in 2013/14, 25% of the 4,080 people Capita reported to have left the UK that year, may still be illegally staying in the country. 

"I was disappointed to find a high level of inaccuracy in the classification of MRP records, with more than a quarter of departures in my sample being incorrectly recorded," Mr Vine added.

"Considerable improvements in the Home Office's capability to monitor, progress, and prioritise the immigration enforcement caseload will be needed to deliver its strategy for reducing the level of irregular migration."

Immigration and Security Minister James Brokenshire defended the Home Office:

"We inherited an immigration system in complete disarray, which turned a blind eye to hundreds of thousands of people with no right to be here, and made no attempt to remove them or even to properly identify the scale of the problem.

"Under the UK Border Agency there was no systematic plan to deal with illegal migrants other than failed asylum seekers and foreign criminals. We scrapped the failing UK Border Agency and brought its work back under the control of ministers partly in order to sort out that mess."

The Government has introduced a new Immigration Act, which cuts the number of human rights type visa appeals blocking the deportation of an illegal immigrant from 17 to 4 

Immigration specialist Cynthia Barker said that the problem of visa overstayers will take years to solve:

"The UK still has no proper system to count people in and out of its borders, so nobody really knows how many overstayers and illegal immigrants there are in the UK. 

"Research by the think tank ippr, suggests that the illegal immigration figure is at least 500,000, which it estimates would take £5 billion and 20 years to deport and remove all of the overstayers.

"The longer an illegal migrants stays in the UK the more chance they have of staying, for instance due to right to a family life under article 8 or through a long stay concession or amnesty."

The failure of the campaign to remove overstaying migrants and students included the ‘go home’ vans and Capita’s bungled 40,000 text messages to so-called illegal immigrants and visa overstayers, asking them to leave the UK. Many of the messages were sent in error to British citizens.