Asylum hotel use rises 8% year‑on‑year under Labour, Home Office shows

(LONDON) The number of asylum seekers living in hotels in the United Kingdom rose by about 8% over the past year, according to new Home Office figures for 2024–25. By March 2025, 47% of all supported asylum seekers were in hotels — a sharp jump from 4% in 2018 — underscoring how contingency accommodation has become a core part of the system despite pledges to move away from it. London and the South East now host a growing share, with London alone accounting for 19% of supported cases by late 2024.

Hotel reliance climbs despite cost cuts

Officials say they have focused on reducing costs rather than reducing hotel use. Between April 2024 and March 2025, the Home Office cut the average nightly cost per hotel resident from £162 to £119 by increasing occupancy per hotel. But hotels still cost about six times more than standard dispersal housing.

The scale of reliance has continued under the Labour government, which took office promising a more orderly system, but has not yet delivered a plan to phase out hotels. Regional data shows the South East and East of England also depend heavily on hotels, with councils reporting pressure on local services and limited warning before placements.

Local authorities have raised concerns about:
– School places for children arriving with little notice
– Access to health services and continuity of care
– Transport costs and strain on local infrastructure when large groups arrive

The shift in regional use marks a break from earlier dispersal patterns that sent most people away from London; today, the capital is the second most common region for asylum accommodation.

Human impact

Families report months — sometimes more than a year — in a single room with no kitchen and limited privacy. Advocacy groups highlight negative effects on mental health, especially for children, and say long hotel stays hamper efforts to:
– Learn English
– Attend regular schooling
– Build community ties

People are often far from legal advisers or support networks and cannot work while they wait, deepening isolation.

Policy moves in 2025 and their limits

In January, the Labour government introduced the Border Security, Asylum and Immigration Bill 2025, which:
– Repeals the Safety of Rwanda Act 2024
– Raises penalties for smuggling
– Gives stronger enforcement powers at the border

The bill, however, does not:
– Introduce new measures to cut hotel use
– Set standards to fix poor conditions in contingency sites
– Raise asylum support rates or create new routes into community housing

These last items are key demands from charities and many councils.

Backlog figures improved modestly but remain high. As of March 31, 2025, around 109,500 people awaited an initial decision, down from 124,000 at the end of 2024. Officials say clearing the legacy backlog is a priority. Yet, even with some progress on decisions, the number in hotels climbed — suggesting the pipeline to longer-term housing is still blocked by wider housing shortages.

Advocacy groups including Asylum Matters and the Refugee and Migrant Children’s Consortium argue the 2025 bill misses the core accommodation problem. Their priorities include:
– A shift to community-based housing
– Faster move-on for people granted status
– Better support rates
– Right to work for people who have waited many months

The Home Office points to national housing shortages and continued arrivals as reasons hotels remain necessary for now.

Pressure on regions and services

According to the Migration Observatory at the University of Oxford, hotel use has reached an unprecedented scale, and the long-standing dispersal policy has effectively broken down under rising demand and a tight housing market. This assessment mirrors council reports in London and the South East: hotels are increasingly acting as quasi-long-term housing, placing heavy strain on local services.

The shift began during the COVID-19 pandemic, when arrivals continued but housing supply tightened and processing slowed. By 2023 the backlog reached historic levels. While the backlog has fallen since then, hotel use has not.

London’s share of supported asylum seekers almost doubled from 10% in 2018 to 19% by late 2024. Without changes in housing supply or stronger dispersal incentives, regional pressures may grow, with more placements in commuter towns and coastal districts where hotel capacity exists.

Financial and practical costs

Even after reducing the nightly rate, the overall hotel bill remains very high due to the sheer number of residents and the length of stays. This raises questions about value for money compared with alternatives such as:
– Expanded dispersal housing
– Repurposed student halls
– Partnerships with housing associations

Analysis by VisaVerge.com indicates rising hotel occupancy is driving costs even as per-night spending falls.

The daily reality for people in hotels includes:
– Delayed family life, schooling, and healthcare routines
– Parents sharing single rooms with children for months
– Teenagers attempting to attend schools far from their accommodation
– Frequent moves between hotels, disrupting contact with caseworkers and GPs

Charities warn these conditions can cause long-term harm and make future integration harder, even for those who later win asylum.

The process in practice (2025 arrivals)

On paper the process is simple but slow in practice:
1. Register the asylum claim with the Home Office.
2. Receive initial accommodation, often in hotels, while waiting for screening and interview.
3. Attend an asylum interview, then wait for an initial decision.
4. If granted status, move to longer-term housing; if refused, consider appeal or face removal.

Officials say they are speeding up decisions, but there is no announced timeline to end hotel use as of August 2025. The government’s focus remains on border enforcement and backlog reduction. Advocacy groups continue to push for community-based options and the right to work for people stuck in limbo, arguing these would cut costs and improve well-being.

For official guidance on accommodation and support, see the government’s page on asylum support: https://www.gov.uk/asylum-support. It explains basic support, cash allowances, and accommodation rules, though it does not change the wider policy choices that keep many in hotels.

Policy debate and likely outcomes

The debate is likely to intensify. Proposed responses include:
– Incentives for councils and landlords to participate in dispersal
– A major expansion of state-run accommodation blocks

Critics say both ideas would fail unless the government also:
– Fixes processing delays
– Increases move-on options for people granted status
– Builds community pathways for families and children

For now the pattern is set: more asylum seekers in hotels, higher overall costs despite cheaper nightly rates, and growing pressure in London and the South East. Without clear targets or a funded plan to expand community housing, the share in hotels may rise further — keeping the system trapped in expensive short-term fixes that serve neither taxpayers nor the people waiting for decisions on their futures.

Key takeaway: Without a funded, coordinated shift to community-based housing and faster move-on routes for those granted status, hotels will likely remain a costly, damaging default that strains local services and harms the wellbeing and future integration of asylum seekers.