UP TO 500 asylum seekers will be making their homes in Southampton as part of a new government-funded contract.

The single people from countries such as Iran and Iraq, China Turkey and the former Yugoslavia, will be housed in the city in private accommodation while they wait for their cases to be decided.

The cost of their stay - which could be for anything up to nine months - will be covered by the Home Office and they will be housed all over the city.

A spokesman for Southampton City Council said: "The contract proposes that the city will accept up to 500 single adults who will arrive at phased intervals over the next seven months.

"The city's social services team is arranging the accommodation, which does not include local authority properties, and will place asylum seekers throughout the city.

"The contract, which has just been signed, is for three years, with a possible extension to five."

The Daily Echo can exclusively reveal the City Council is applying for European funding to investigate how talented, professional asylum seekers can be utilised during their stay in the city.

A spokeswoman who works with asylum seekers in Southampton said: "There are some very talented people such as doctors, medical engineers and scientists who have come to the city.

"We are applying for European funding to investigate how we can train these people so their talent can be put to good use."

The latest batch of asylum seekers will arrive in the city over the next seven months.

"Southampton's existing population of asylum seekers has dropped from just under 900 to approximately 450. This figure includes families and unaccompanied minors.

"The Home Office intends to remove the backlog of outstanding asylum claims within the year and are on target to do so."