Home Office in Turmoil Over Continued Use of Hotels for Asylum Seekers

The Home Office is under fresh pressure over its continued use of hotels to accommodate asylum seekers, as new data show an 8% rise in hotel use under the Labour government compared with the same point last year. While the number dipped slightly in the last quarter — from 32,345 in March to 32,059 in June 2025 — councils, campaigners, and local residents have stepped up legal and political challenges.

At the same time, overall spending on asylum accommodation fell to £4.76 billion in 2024/25, down 12% from the £5.38 billion peak in 2023/24, reflecting tighter contract rates and more room sharing. Labour has promised to end hotel use by 2029, a target that now defines the political timetable for one of the most sensitive issues in UK asylum policy.

Officials say hotels remain “contingency accommodation” because long-term housing is still short. London is the stark outlier: the share of asylum seekers placed in hotels reached 65% in the capital at the end of 2024, higher than anywhere else, and stayed elevated into early 2025. Nationally, the proportion in hotels peaked at 47% at the end of Q3 2023 and fell to 37% by the end of 2024, according to research cited by the Migration Observatory.

The Home Office has pushed down nightly rates — from £162 to £119 between April 2024 and March 2025 — and increased occupancy to cut costs.

Latest figures and political stakes

Labour now owns the problem it inherited. Its pledge to phase out hotels by 2029 is popular in many communities where hotels are also local hubs and wedding venues. But the path is messy and politically charged.

• Labour-run councils are among those weighing legal action against the Home Office, following a successful challenge by Epping Forest District Council that limited hotel use in its area.
• Conservative and Reform UK leaders are encouraging more councils to follow suit, widening the political front and adding to operational strain.

Protests at migrant hotels are expected to continue in August, with more than a dozen events nationwide. Police and local authorities are preparing for disruption.

• For families in hotels, the immediate worries are noise, stress, and uncertainty about transfers.
• Businesses that depend on hotel trade face lost bookings and changed staff hours.
• Asylum seekers often live in crowded rooms with shared facilities, affecting daily life.

The government’s full-dispersal model, launched in May 2023, requires every local authority to host asylum seekers proportionally. Implementation has been uneven: London and parts of the South East still rely heavily on hotels.

In response, the Home Office has expanded “alternative non-detained accommodation” at ex-military sites, including Wethersfield and Scampton. Campaigners raise concerns about living standards and long-term cost.

The National Audit Office reports that refurbishing big sites can cost more than using hotels, weakening the case for these alternatives unless they reduce stays and improve throughput.

Legal pressure and local pushback

Placement rules were revised this summer after a High Court order. The Allocation of Asylum Accommodation Policy (Version 13, June 2025) keeps a “no choice” approach: people are offered accommodation where beds exist, and requests for a specific location are considered only if there are serious health, safety, or security risks.

The policy was reviewed and republished to meet the Public Sector Equality Duty following the case of TG & Ors v Secretary of State for the Home Department on May 27, 2025. This tighter framework limits the Home Office’s flexibility but gives councils a clearer target for challenge.

Local authorities’ concerns:
– Hotels used as community assets are taken out of normal use.
– Sudden arrivals stretch public services (schools, health, housing).
– Some councils cooperate with dispersal officials; others argue pressure remains concentrated in already stressed areas.

The Epping Forest ruling has encouraged councils across party lines to test the limits of Home Office placements.

On the ground, protests and counter-protests force hotel operators to add security, which raises costs. Staff report burnout. Children in prolonged hotel stays miss out on normal routines, extracurricular activities, and stable schooling. Women and girls often raise privacy concerns. NGOs argue these conditions are not fit for families and vulnerable people.

The Migration Observatory notes the UK uses hotels far more than most European countries and says current savings largely come from:
– Packing more people into fewer rooms, and
– Pushing rates down, rather than creating a new model of accommodation.

Policy mechanics and human impact

Hotels remain a stopgap because the asylum system struggles with volume and backlogs.

• People who can live with friends or family, or support themselves, are expected to leave Home Office accommodation.
• For everyone else, hotel stays can stretch if dispersal housing is not ready.
• Ex-military sites are non-detained (people can come and go), but distance from town centres adds transport costs and limits access to services.

For residents placed far from their networks, the “no choice” policy can feel harsh. The rules do allow exceptions: people can ask the Home Office to consider serious medical risks, threats, or disability-related needs when deciding placement.

The current policy is public and can be read on the UK government website under “Allocation of Asylum Accommodation Policy.” The most recent version, published in June 2025, is available at:
https://www.gov.uk/government/publications/asylum-accommodation-requests-policy/allocation-of-asylum-accommodation-policy-accessible.

Caseworkers are expected to apply this guidance after the High Court’s direction on equality duties.

Key numbers

According to analysis by VisaVerge.com, the government’s 2029 pledge sets a clear finish line but not the operational route. Success requires three levers moving together:

1. Faster decisions to shorten stays.
2. More dispersal housing coming online.
3. Fewer arrivals requiring emergency beds.

If one lever falters, pressure shifts back to hotels.

Political and practical pressures ahead

The politics are unforgiving. Labour must show steady monthly reductions to keep control of the narrative. Councils want predictability and funding for schools, health, and housing. Communities want their hotels back for weddings and local events. Contractors want workable rates and safer sites for staff. Asylum seekers want privacy, space for children, and a fair process that does not leave them in limbo.

Looking ahead:
– The Home Office is expected to continue pushing cost-cutting and dispersal targets while defending placements in court.
– The full-dispersal model could work better if councils receive timely funding and landlords join approved schemes.
– Uneven regional capacity—especially in London and the South East—remains the biggest barrier.

With more protests planned and legal challenges growing, pressure for faster decisions and more permanent housing will likely increase. Labour’s 2029 deadline gives the system a timeline; whether it delivers better living standards depends on decisions made now about speed of decisions, location of new housing, and fair handling of exceptions that matter most to people’s lives.