Harben House Hotel in Newport Pagnell Could Be Used to House Homeless People in Milton Keynes

Milton Keynes City Council is considering using Harben House Hotel in Newport Pagnell to provide temporary accommodation for homeless individuals and families.

This decision comes after the government’s initial plan to house asylum seekers in the hotel was halted due to the owner's criminal background.

The Home Office had planned to use Harben House to accommodate 270 asylum seekers. However, a BBC investigation revealed that Siddharth Mahajan, the hotel’s owner, had previously been convicted of offences related to operating houses of multiple occupancy (HMOs). Mahajan, aged 42, was sentenced to 16 months in prison in 2019 for perverting the course of justice and using forged documents.

Following these revelations, the Home Office cancelled its plans. The company managing the hotel claimed that Mr Mahajan had severed all ties with Harben House a year ago, and he holds no beneficial interest in the hotel or any related agreements. He resigned as a director on the same day the BBC reported his involvement.

The company is now officially listed as having a sole director, Varun Chadha, a business partner of Mahajan.

Milton Keynes City Council is now considering using 140 rooms at Harben House for short-term temporary accommodation. The council leader, Pete Marland, expressed his concerns about the initial Home Office plan last August, describing it as "shocking" and highlighting a "continued level of incompetence" in the government’s decision-making process.

Peter Marland stated, "The Home Office is meant to be responsible for law and order, not paying convicted felons hundreds of thousands of pounds." He also emphasised the difference between the government's previous plan to "dump vulnerable asylum seekers" at the hotel and the council's intention to house "local families…while providing them with plenty of help and support."

In a new statement, Marland said, “We have been assured by external due diligence that the ownership has changed hands, but of course we will consider any other information that comes to light before the meeting before making a final decision.”

Liberal Democrat Councillor Jane Carr, representing Newport Pagnell South, is seeking "absolute assurances" that all legal processes have been followed and that former directors will not influence the company managing Harben House.

"I feel residents have the right to this assurance," she said.

A council spokesperson added, “As part of our due diligence when considering the use of Harben House, we received assurance from the managing agent that its ownership had fully changed. We will seek further clarification before any decision is made.”

A recent report indicated that Milton Keynes City Council spends approximately £20 million annually on temporary accommodation, primarily in the private rented sector. The report underscores the need for lower-cost options.

Harben House could provide accommodation for single people, childless couples, or single-parent households waiting for a decision on their homeless applications.

A spokesperson for Bluebelltame and Lotustame, the owners of Harben House Hotel, said: "Siddharth Mahajan severed all connections with the ownership and running of Harben House Hotel a year ago."

"He has no beneficial interest in either the hotel or the proposed deal between its current owners, Bluebelltame Ltd and Lotustame Ltd, and Milton Keynes City Council."

“In effectively giving the hotel back to the city, this deal will deliver tangible and cost-effective benefits to the local community by providing much-needed accommodation for its homeless.”