Asylum Hotel Closures: Government Reduces Usage Amidst Scrutiny

The number of hotels used to house asylum seekers in the UK has fallen to 185, following the cessation of use for eleven establishments. This marks a notable reduction from a peak of approximately 400 such facilities.

Government Rationale and Criticisms

Home Office Minister Alex Norris stated that the decrease is a result of enhanced removals of individuals without a legal right to remain in the UK and the relocation of others to alternative sites, including military barracks. Mr Norris highlighted that asylum hotels have been a "point of significant frustration" for local communities and a perceived "pull factor" for illegal immigration. The government aims to cease all hotel accommodation for asylum seekers by July 2029.

However, this initiative has drawn criticism. The Conservatives accused the government of "shunting people from hotels into residential apartments to hide what is going on," arguing that this removes housing stock from young people. Liberal Democrats suggested that while closures are positive, the underlying issues remain, advocating for "Nightingale processing centres" to clear backlogs. Reform UK described the move as merely shifting migrants from one taxpayer-funded accommodation to another, demanding stricter deportation policies.

Financial Implications and Accommodation Trends

The use of hotels for asylum seekers has been a contentious issue, primarily due to escalating costs. In 2024-2025, an estimated £2.1 billion was spent on hotel accommodation, down from £3 billion the previous year. The government projects that ending accommodation in these eleven hotels alone will save nearly £65 million annually.

The dramatic increase in hotel usage began in 2020, driven by a growing backlog in asylum claims and a shortage of long-term housing. While the number of people in hotels peaked at over 56,000 in 2023, recent figures indicate around 30,657 individuals were in hotel accommodation as of December. The majority of asylum seekers are housed in "dispersal accommodation," typically residential properties within communities.

The government plans to further ramp up the use of "large, basic accommodation sites" to move people out of hotels permanently, citing Crowborough military barracks as an example where up to 350 illegal migrants have been relocated.