The plans for Stoke Heath, first raised by Conservative MP Mark Pritchard in the House of Commons in June, have been met with strong opposition from residents who say the houses should be for locals.
The Home Office said it had introduced “robust processes” to ensure new-build sites like Stoke Heath can “never be considered again”.
It is understood the Shropshire development pre-dates new processes introduced by the Home Secretary, which guide against housing asylum seekers in new-build properties that could increase social tensions.
As first reported by The Sun, residents have learned that 21 homes in the development have been acquired by outsourcing company Serco for asylum seekers.
Read more: Rise in rough sleepers in London who were last in asylum accommodation
Read more: Asylum seekers to pay £10k towards cost of their own accommodation and support
Labour has pledged to stop using asylum hotels by the next election, moving towards housing asylum seekers in the community as well as in former military barracks.
Earlier this week, the Home Office announced that asylum seekers will be made to pay up to £10,000 towards the cost of their accommodation and support once they start earning.
It is one of several policies aimed at tackling the migrant crisis in the Immigration and Asylum Bill, which was introduced to Parliament on Tuesday.
Meanwhile, the department warned delivery firms and other gig economy employers could be fined up to £60,000 for every illegal migrant worker they hire.
Companies using self-employed models, such as in food delivery, will now need to carry out permission to work checks like traditional employers do.
On Wednesday, the National Crime Agency said boats bound for people smuggling gangs operating in the Channel were seized at the Bulgarian border, as part of efforts to disrupt the supply chain for crossings.
It comes as figures show the number of migrants arriving in the UK after crossing the Channel in the first half of the year fell sharply compared to the same time last year.
Some 11,884 migrants made the journey in the six months to the end of June, according to the latest Home Office data.
This is 41% lower than the 19,982 recorded for January to June last year.
It is also down 12% on the 13,489 who arrived in the first six months of 2024.

