Housing group Mears accused of providing ‘pressure cooker’ asylum seeker accommodation hails profits

Housing group Mears hailed “strong” 2020 financial results on Thursday amid allegations it has been providing sometimes bed-bug infested accommodation and “pressure cooker” living conditions to asylum seekers. 

Mears is one of three private companies contracted by the Home Office to manage asylum accommodation, alongside Serco and Clearsprings Ready Homes.

The three companies have been awarded a £4 billion contract to run asylum seeker housing provision until 2029. 

In recent weeks Mears has faced allegations from asylum seekers of providing some accommodation infested with bed bugs.

It has also faced claims from a former employee that during the pandemic the firm, which took over the contract in 2019, rushed to place asylum seekers in accommodation without completing some necessary checks. 

Pregnant women and women with young babies this week told Scotland’s BBC Alba that they are being housed in too-small rooms in a Mears-run housing unit in Glasgow. They said they are living in “pressure cooker” conditions, and alleged that the lack of ventilation in their rooms means that the fire alarms go off when they are cooking.

The allegations against the Mears Group have not been independently verified.

On Thursday the company said in trading update that it expects to deliver a pre-tax profit of £4.7 million in the second half, with revenues of £413 million for the period.

The company hailed its “strong” cash performance, saying it delivered “quarter on quarter improvement across 2020”. 

Mears paid down debts “significantly” in the year, and the group said that it had adjusted net cash position of £56.9 million by the December 31 year end, compared to a net debt of £51 million at the end of 2019. The company made £52.5 million in December from selling off its planning arm, Terraquest. 

Chief executive, David Miles, said: “Notwithstanding the fact that much of the energy and focus in 2020 was expended in reacting to the operational challenges brought by Covid-19, it is pleasing that the Group made strong progress against all its key strategic objectives. 

“These were to refocus on housing activities, significantly to reduce indebtedness and to improve the returns which we obtain on our invested capital. Notwithstanding the headwind of a third national lockdown, I am delighted at how well the Group has started the new year.”

Mears shares were up 4.2% on Thursday afternoon. 

With regard to allegations over insect infestations, a Mears spokesperson told the Standard: “Mears has taken all appropriate steps to provide good quality accommodation and support to asylum seekers during the pandemic.   Arrangements during the pandemic have been agreed in consultation with NHS and public health advice as well as in consultation with the Home Office.”

The spokesperson said that the company “has taken all appropriate steps to provide good quality accommodation and support to asylum seekers during the pandemic”, and that all its “arrangements during the pandemic have been agreed in consultation with NHS and public health advice as well as in consultation with the Home Office.”

In response to the comments made to BBC Alba, the Mears spokesperson said: “The mother and baby unit is a new dedicated facility in Glasgow to support mothers, babies and vulnerable woman.