Permission-to-stay scheme could end asylum hotel use by March 2026

(UNITED KINGDOM) A targeted, time‑limited permission‑to‑stay plan for people from countries with very high refugee approval rates could shut down the UK’s network of asylum hotels by March 2026, according to new proposals set out by the Refugee Council on August 28, 2025. The idea is simple: give temporary residence to asylum seekers from Afghanistan, Eritrea, Iran, Sudan, and Syria who were already in the system by June 30, 2025, after full security checks, then move them out of hotels while the Home Office completes final decisions.

According to analysis by VisaVerge.com, the scheme aims to bring a fast, orderly end to hotel use and reduce rising costs and tensions in towns hosting hotel sites. The Refugee Council says this would be a one‑off response to a unique situation, not a permanent change to asylum rules.

Rationale and approval rates

The charity points to high grant rates as the basis for the plan:

• Sudan and Syria: approved at around 98%
• Eritrea: 87%
• Iran: 60%

If people from these countries pass full security vetting, the Refugee Council suggests temporary permission could be issued quickly to clear the backlog that has pushed thousands into hotels.

Current scale and costs

The numbers are stark:

• As of June 2025, 32,917 people from the five target countries were supported by the Home Office — a figure that exceeds the total number of asylum seekers in hotels (32,059).
• There are more than 32,000 people spread across up to 210 hotels.
• Around 40% of hotel residents come from the five high grant‑rate countries.
• Ministers say they lowered the average nightly hotel rate from £162 to £119 (April 2024 to March 2025), but hotels still cost roughly six times more than other types of asylum accommodation.

These figures underpin calls to move people into cheaper, more stable housing and close hotel contracts.

Political, legal and local pressures

The proposal comes after weeks of local protests and legal fights over hotel placements, including a High Court injunction that stopped the Home Office from using the Bell Hotel in Epping. Several councils say continued hotel use is stretching local services and sparking public order worries.

• The government has called earlier pledges to keep hotels in place until 2029 unrealistic and expensive.
• Officials promise a “big surge” of hotel closures in the new year, with at least five more sites expected to shut by the end of 2025.
• Councils have become more confident in challenging hotel use on planning, resources and public order grounds, using the courts to press their cases.

How the permission‑to‑stay plan would work

The Refugee Council proposes a rollout similar to earlier “backlog clearance” approaches used under Tony Blair’s government. Key features:

• Targeted and time‑limited, tied to a strict cut‑off date to avoid ongoing demand.
• Not a replacement for the asylum process — the Home Office would still make a final decision after the temporary period.
• Focused on people already in the system by June 30, 2025, and contingent on full security checks.

Process steps (as set out by the Refugee Council):

1. Identify who qualifies: people from Afghanistan, Eritrea, Iran, Sudan, and Syria in the asylum system by June 30, 2025.
2. Run full security checks on all eligible cases.
3. Issue a time‑limited grant of permission‑to‑stay, allowing people to leave hotels.
4. Arrange moves out of contingency sites and into more stable housing.
5. Track progress and support integration, including help with private rentals where possible.

Backers believe the plan could allow most hotels to close by March 2026, with a phased transition starting in early 2025 for those already through security checks. The Home Office has hinted at an accelerated timetable, but has not endorsed this specific Refugee Council model.

Policy context and wider reforms

The Labour government, in office since January 2025, is supporting a wider reset of asylum and border policy. Highlights:

• The Border Security, Asylum and Immigration Bill focuses on stronger border enforcement and more humane processing, while scrapping previous schemes such as Rwanda.
• Ministers seek more stable long‑term housing to reduce pressure on councils and end the need for hotels.

The Home Office argues dispersal accommodation and private rentals are better for residents and communities than hotels. Their accommodation allocation guidance is available on GOV.UK:
https://www.gov.uk/government/publications/allocating-asylum-accommodation-policy

Experts note the UK’s heavy reliance on hotels is unusual in Europe, where countries tend to use dispersed housing and community support.

Impact on applicants and communities

Supporters say the permission‑to‑stay approach would deliver three major benefits:

• Save money by shifting people out of expensive hotel rooms into cheaper, stable housing.
• Reduce local flashpoints and the exposure of asylum seekers to hostile crowds.
• Restore a measure of normal life for people who have fled war or persecution, improving access to schools, health care, and legal advice.

Migration specialists identify two drivers of hotel dependence:

• A backlog in asylum decisions
• A shortage of long‑term housing

Since 2020, pressures have increased, concentrating placements in London, the South East, and the East of England. Even with lower nightly rates, the overall bill remains high due to large numbers and long stays.

Costs, limits and safeguards

Costs and community impact are central to debate:

• Rapid hotel closures could save hundreds of millions of pounds a year, given current price differences.
• Closing hotels could reduce protests and ease strain on police and local services.
• For families and single adults, leaving hotels sooner could mean stable schooling and better access to healthcare.

Scheme limits and safeguards:

• Applies only to people already in the system by the cut‑off date and only after security vetting.
• Does not change the final decision on refugee status — final outcomes still determined after full assessment.
• Does not resolve the long‑term housing shortage, which depends on local rental markets and council capacity.
• Any transition must be orderly, with checks completed and support in place to avoid homelessness or pressure on emergency shelters.

Important: Legal and political pressures are likely to continue. Councils may challenge placements in court, advocacy groups will seek assurances that people are not left without support, and ministers must balance speed with robust security checks and public confidence.

Human impact and local implications

On the ground, the outcomes are tangible:

• A Sudanese father waiting months in a hotel cannot plan for his family.
• An Eritrean teenager misses school due to repeated hotel moves.
• A Syrian mother keeps her children indoors when protests flare at the hotel’s entrance.

For these families, moving into stable housing with a time‑limited status — and a clear path to a final decision — could meaningfully improve daily life.

If adopted, expect:

• Fast activity in regions with heavy hotel use.
• Funding deals to help councils manage arrivals into private rentals or other housing.
• Continued scrutiny from courts, councils, and advocacy groups if the plan is not adopted.

Officials, councils, and charities agree on one point: hotels were a stop‑gap, not a plan. With more than 32,000 people still in rooms meant for tourists, the pressure to act is growing. A focused permission‑to‑stay scheme offers one path to close the chapter on hotel living while giving people who are likely to be recognised as refugees a safer, steadier place to start their new lives.

For now, the decision rests with ministers, the pace with the Home Office, and the day‑to‑day reality with the families waiting behind hotel doors.