Under the proposed law, landlords will be able to evict undocumented migrants from their properties without a court order, the Guardian reported.
The landlords themselves could face a five-year jail term if they fail to check their tenants' residence status.
Britain is struggling to stop an influx of undocumented migrants, coming to the country through the Channel Tunnel from the French port city of Calais.
Earlier on Monday, the chief constable of the southeastern English county of Kent said that as many as 70 percent of undocumented immigrants in Calais might be managing to enter the United Kingdom.
Construction of a 1.2-mile fence around the Eurotunnel rail terminal near Calais, aimed at securing the entrance to the Channel Tunnel, is reportedly expected to be completed on Friday.