Number of asylum hotels falls to 185 after 11 close

Asylum Hotel Numbers Drop to 185 After 11 Closures

The Home Office has announced the closure of 11 hotels, reducing the total number of facilities used to house asylum seekers to 185. This follows a peak of approximately 400 hotels in use during the pandemic. Minister Alex Norris attributed the decline to higher removals of individuals without the right to remain in the UK and the shift to alternative accommodations like military barracks.

Asylum seekers are typically restricted from working during their first 12 months of waiting for a decision on their claim. When they cannot afford their own housing, the Home Office is legally obligated to provide them with shelter. The reliance on hotels surged in 2020 due to delays in processing applications and a shortage of long-term housing, leading to widespread controversy.

Protests and legal challenges have emerged in local communities, with concerns over costs and the impact on residents. In 2024-2025, £2.1bn was allocated to hotels, compared to £3bn the prior year. Figures from December revealed that 103,426 people were in asylum accommodation, 30,657 of whom occupied hotels. Two-thirds of all asylum seekers are placed in dispersal accommodation, usually community houses.

“We know the traffickers say ‘come to the UK, live in a hotel, work illegally,’ ” Norris stated. “We’re changing that reality, we’re trying to reduce that pull factor.”

The government aims to transition asylum seekers from hotels to larger, basic sites to eliminate the reliance on hotels permanently. Labour, which came to power in July 2024, has pledged to stop using hotels by July 2029, claiming the closures would save nearly £65m annually. Norris expects the number of people in hotels to drop below the 29,585 figure seen when Labour first took office.

Despite the closures, the number of asylum seekers in hotels peaked at over 56,000 in 2023 under the previous Conservative administration. Numbers have since fluctuated, rising again after Labour’s election but now falling. Critics argue the move shifts the problem rather than solving it. “Closing asylum hotels is right for both communities and asylum seekers themselves, but it doesn’t fix the problem; it just moves it elsewhere,” said Liberal Democrat Home Affairs Spokesperson Max Wilkinson.

Conservative shadow home secretary Chris Philp accused the government of “shunting people from hotels into residential apartments to hide what is going on,” noting the reduced availability of housing for young migrants. Reform UK’s Zia Yusuf called the shift “absolutely shocking,” claiming it merely transfers illegal migrants between taxpayer-funded options. The Green Party has yet to comment on the policy.

Following its election in July 2024, the government vowed to cut small boat crossings by targeting trafficking networks. However, over 100,625 arrivals were recorded in 2025, with officials acknowledging the challenge. Norris emphasized that the closures would weaken the incentive for illegal entry, aligning with broader efforts to streamline asylum accommodation. Local councillor Rachel Millward criticized the lack of community engagement, stating the plans had not been adequately explained to residents.