Recommendation 13

We also examined lessons learned from recent accommodation initiatives. The NAO’s 2024 investigation into the acquisition of the Northeye site identified significant weaknesses in due diligence, 17 C&AG’s Report, paras 2.8, 2.11-2.16 18 Q 5 19 Qq 17, 137 20 C&AG’s Report, paras 13, 2.9 21 Qq, 5, 52-54 22 C&AG’s Report, para 2.12 23 Qq 51-52 24 Letter from the Second Permanent Secretary of the Home Office relating to the inquiry into the asylum system, dated 25 February 2026, dated 6 February 2026 12 oversight and engagement with partners during the procurement process. The Home Office completed the purchase in September 2023 for around £15.4 million, and later confirmed it intended to transfer or sell the site after determining it was not suitable for asylum accommodation.25 During our evidence session, the Home Office told us it was still “looking at the best way to move the site on”.26 In its follow-up response, the Home Office stated it had agreed to transfer Northeye to Homes England “in support of their plans to deliver up to 240 houses to enable value to be gained from the site”.27 The Home Office later added that the transfer involves a “70:30 profit split” in favour of the Department after remediation and development costs, but confirmed it “will not be able to recover the full £15.4 million” spent on purchasing the site.28 If it is not fit for asylum seekers, why is it fit for our homeless population?