Migrants are being housed in “unlicenced HMOs” as tension mounts over the asylum crisis, politicians fear.

Communities across Belfast are concerned about the growing number of people being moved into “dispersal accommodation”.

And politicians have warned some greedy landlords are cramming more migrants into unapproved properties, prompting a fresh crisis for ministers.

It comes as Labour was accused of being “scared” of upsetting the European Union over potential border checks.

The Government and police chiefs are under growing pressure to carry out more spot checks near the border to detect more illegal migrants, amid fears Dublin is “very happy to just remove them from their territory”.

Jim Allister, the leader of the Traditional Unionist Voice party in Northern Ireland, told the Daily Express: “Within hotels, they are in a contained location. In HMOs, they are dispersed into residential communities.

“We’ve got a problem – and I’ve got it in my own area – of unlicensed HMOs. They are supposed to be licensed. There is a lack of oversight which breeds its own feeling that it is out of control.

“There are people making money out of this.

“My intelligence would indicate that in this town [Ballymena], there are more HMOs than there are licences for HMOs.

“It’s hard to be definitive.”

A woman in the Shankill Road area of Belfast also claimed she saw “with my own eyes” eight men living in a single house.

And the revelations will prompt fresh concern over the “backdoor route” into the UK.

Mr Allister said: “Dublin has a lot of questions to answer. A lot of people have been misinterpreting what the Common Travel Area (CTA). It gives the right of travel to those who are here legally. It does not give the right to travel for illegals.

“It’s why the Irish Government have been doing checks on their side but the UK authorities have not been doing that.

“If it is good enough for Dublin to do it to protect their territory from abuse, why is it not good enough for the United Kingdom to do it?

“They are hiding behind the CTA.”

And Mr Allister offered a scathing assessment of Labour’s motivation.

He said: “They are scared of being accused by the EU and others that they are implementing a border on the island of Ireland. We are paying the price of it.

“Where does the Good Friday Agreement say that you shouldn’t have checks for illegals.

“They have fallen for the propaganda of Irish nationalists on the Good Friday Agreement.

“Dublin is very happy to just remove them off their territory. In Dublin Airport, they tell them where the bus is and Dublin is very happy to facilitate them getting into Northern Ireland.

You have to have checks, which may be spot checks. You have spot checks on buses to find illegals and not let them in. All of that can be done in the confines of the CTA. It requires the police to do what the Garda do.

“Dublin would then refuse to take them in. They are letting them in because they have an easy way for them to escape into Northern Ireland.”

A police bulldozer was moved into Belfast on Friday as officials began clearing up the devastation caused by rioting on Tuesday and Wednesday night.

Police said Thursday night saw a notable reduction in violence, with “no significant incidents of public disorder”.

Over 100 people attended a Whiteabbey protest, while a small group also gathered in east Belfast. For a period, around six people stood in the middle of the Newtownards Road close to Dee Street blocking four lanes.

And one of the country’s leading politicians, the DUP’s Sammy Wilson, denied Northern Ireland is a racist country.

He said: “I don’t want Northern Ireland to be seen as a place that if you are not white and British, you’re not welcome because I do believe people who want to come here and help us grow our economy, have a good society, should be welcomed.

“I do reject accusations it is a racist country. There are small elements, whether they are hyped up by people who are evil, whether they are affected by drink or drugs. In every society, there are racist people.

“And what happened on Monday night gave some of those people, they believe, gave them some legitimacy. It didn’t.

“The message seems to be, people who break the law by coming into our country seem to be taken with a hand.

“That is what angers people.

“It’s never happened because our Government is so committed to having no hard border with the Irish republic and they won’t do it.

“They are afraid of annoying the EU, they are afraid of annoying the Irish Government and they want to reset relations with the EU so the last thing they want is a row about putting up a border, whether it’s a people border, between an EU state and Northern Ireland.”