Asylum Hotel Numbers Drop to 185 After 11 Closures

The number of hotels designated for housing asylum seekers has decreased to 185, following the closure of 11 facilities. This marks a decline from a previous high of approximately 400 hotels. Home Office Minister Alex Norris attributed the reduction to a rise in the removal of individuals without a right to remain in the UK and the use of other accommodations like military barracks.

Norris highlighted that asylum hotels had caused “significant community frustration” and served as a motivator for people to enter the country illegally. The Conservatives criticized the move, claiming the government is shifting asylum seekers into residential apartments to conceal operational activities. Councillor Rachel Millward expressed concerns, stating the Home Office had not adequately consulted local communities or explained the plan.

“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.”

Asylum seekers are typically not permitted to work during their first 12 months while awaiting claim processing. If they lack independent housing, the Home Office is legally obligated to provide shelter. The use of hotels surged in 2020 due to processing delays and limited long-term housing options, sparking local protests and legal disputes.

Financial data reveals £2.1bn was allocated to hotel accommodations in 2024-2025, up from £3bn in the prior year. By December, 103,426 people were in asylum housing, with 30,657 residing in hotels. Two-thirds of asylum seekers are placed in “dispersal accommodation,” usually community homes. The next official report is scheduled for May, though Norris anticipates hotel occupancy will drop below 29,585, the level during Labour’s initial tenure.

The Conservative-led government saw asylum hotel numbers peak at over 56,000 in 2023. Since Labour took office, the count rose again but has since fallen. Labour aims to eliminate hotel use by July 2029, projecting annual savings of nearly £65 million and planning further closures soon.

Conservative shadow home secretary Chris Philp argued that the policy is “shunting people from hotels into residential apartments to hide what is going on,” adding that apartments are less accessible for young migrants. Liberal Democrat Home Affairs Spokesperson Max Wilkinson noted that closing hotels addresses community concerns but doesn’t resolve the underlying issue, suggesting Nightingale processing centers could reduce the need for temporary housing.

Reform UK’s Zia Yusuf called the shift “shocking,” stating the government is merely transferring illegal migrants between taxpayer-funded spaces. He warned that more arrivals will follow unless his party is in charge, advocating for immediate detention and deportation. The Green Party has been sought for their response.

Despite the closures, 100,625 individuals arrived in the UK by 2025, indicating the small boat crossings remain high. The government now plans to expand “large, basic accommodation sites” to permanently relocate asylum seekers from hotels.