Immigrants living in Britain illegally will face eviction from rental properties under new laws to be included in a new immigration bill, the media reported on Monday.
Landlords who fail to check the immigration status of tenants could be fined or imprisoned for up to five years under a new criminal offence to be included in the bill, BBC reported.
Communities Secretary Greg Clark said the government would crack down on "rogue landlords who make money out of illegal immigration".
Measures will also be introduced to crack down on landlords who exploit vulnerable migrants by renting out unfit flats and houses.
"We will also require them to meet their basic responsibilities as landlords, cracking down on those who rent out dangerous, dirty and overcrowded properties," Clark added.
Some 10,000 illegal immigrants continue to receive a taxpayer-funded allowance of 36 pounds ($56) a week, despite their applications having been rejected, because they are living in the country with their families.
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Immigration Minister James Brokenshire said he wanted to "send out a very clear message to those who seek to exploit the system that Britain is not a soft touch on asylum".
The proposals follow the British and French governments struggle to deal with a migrant crisis in Calais, where large numbers of people are making nightly bids to cross the Channel to reach Britain.