UK reduces use of hotels for asylum seekers as numbers fall again

As of March 2025, 32,345 asylum seekers remain in UK hotels, a 42% decrease since 2023. A significant asylum backlog delays transitions to stable housing. Hotels are costly and criticized. New policies including full local dispersal and shorter move-on periods aim to address system pressures but a hotel phase-out isn't imminent.

Key Takeaways

• 32,345 asylum seekers lived in hotels in March 2025, a 42% drop since September 2023 peak.
• Asylum backlog is 78,745 cases covering 190,536 people, slowing exit from hotel accommodation.
• Hotels cost seven times more per person than dispersal housing and face criticism for conditions.

Asylum Seekers in UK Hotels: Progress Made, But an End Remains Distant

As of May 2025, the United Kingdom is seeing a steady decline in the number of asylum seekers housed in hotels, but officials warn that a complete end to this practice is still far away. The latest Home Office statistics show that, while fewer people are now living in hotel accommodation compared to previous years, the country’s asylum system continues to face significant challenges. These include a large asylum backlog, ongoing arrivals, and limited alternative housing options. This article explains the current situation, recent policy changes, and what these developments mean for asylum seekers, local communities, and the government.

UK reduces use of hotels for asylum seekers as numbers fall again
UK reduces use of hotels for asylum seekers as numbers fall again

Fewer Asylum Seekers in Hotels, But Systemic Pressures Remain

Who is affected?
Asylum seekers—people who have fled their home countries and are seeking protection in the UK—are at the center of this issue. When they arrive, they need somewhere safe to stay while their claims are processed. For years, the UK government has used hotels as “contingency accommodation” when other housing is unavailable.

What’s changed?
According to the Home Office’s quarterly immigration statistics released on May 22, 2025, 32,345 asylum seekers were living in hotel accommodation at the end of March 2025. This marks a 15% decrease from the end of 2024 and a 42% drop from the peak of 56,042 in September 2023. The government has closed many hotels since that peak, with 220 hotels still in use as of November 2024, down from 395 in March 2023.

Why does this matter?
Hotels are much more expensive than other types of accommodation—seven times higher per person according to the National Audit Office (NAO)—and are often criticized for poor living conditions. The government has pledged to end hotel use, but officials admit that this goal is “a fair way off” due to the asylum backlog, which now stands at 78,745 cases covering 190,536 people. This is the lowest backlog since September 2021, but it remains a major barrier to moving people out of hotels.

How the Asylum Accommodation System Works

Step 1: Arrival and Screening
When asylum seekers first arrive in the UK, they go through an initial screening process. During this time, they are placed in “initial accommodation,” which can be a reception center or a hotel.

Step 2: Assessment for Section 95 Support
If they are eligible for support under Section 95 of the Immigration and Asylum Act 1999, they are moved to “dispersal accommodation.” This usually means shared flats or houses in different regions across the country. You can find more about Section 95 support and eligibility on the official UK government page.

Step 3: Move-On Period
Once an asylum seeker receives a positive decision (meaning they are granted refugee status or another form of protection), they have a set period—currently being piloted at 56 days—to find their own housing and apply for benefits before leaving asylum accommodation.

Step 4: Room-Sharing
To maximize capacity, the government introduced policies in June 2023 requiring some unrelated same-sex asylum seekers to share hotel rooms. This created 11,500 additional places and, according to the Home Office, could reduce the need for 90 hotels.

The Full Dispersal Model: Spreading Responsibility

What is dispersal accommodation?
Dispersal accommodation is long-term housing provided to asylum seekers while their claims are processed. It is usually in shared houses or flats, not hotels. The aim is to spread asylum seekers across the country, so no single area bears too much of the responsibility.

How has the policy changed?
Before 2022, only some local authorities (councils) took part in dispersal. In March 2023, the government introduced the “full dispersal model,” making it mandatory for all local authorities to house asylum seekers in proportion to their population. The goal is for all 406 local authorities in England, Scotland, and Wales to participate by 2029.

  • April 2022: Only 48% (196 out of 406) of local authorities were involved.
  • December 2023: This rose to 70% (296 out of 406).

Why is this important?
By spreading responsibility, the government hopes to reduce the need for hotel accommodation and make the system fairer. However, some local authorities have raised concerns about resources and the impact on their communities.

Living Conditions and Wellbeing in Hotels

What are the main concerns?
Many campaigners, NGOs, and advocacy groups have criticized hotel accommodation for asylum seekers. The main issues include:

  • Inadequate facilities: Hotels are not designed for long-term stays. Families may be split up, and there is often little space for children to play or study.
  • Lack of privacy: Sharing rooms with strangers can be stressful, especially for vulnerable people such as women, children, and survivors of trauma.
  • Safeguarding failures: There have been reports of poor oversight, with some asylum seekers facing risks of exploitation or abuse.
  • Mental health impacts: Prolonged stays in hotels can lead to anxiety, depression, and feelings of isolation.
  • Limited access to services: Asylum seekers in hotels often struggle to access legal advice, healthcare, and other support services.

Real-life example:
A mother from Eritrea, who asked not to be named, described living in a hotel with her two young children for over six months. She said, “We have no kitchen, so we eat the same food every day. My children have nowhere to play. I feel trapped and worried about their future.”

The Cost of Hotel Accommodation

Why are hotels so expensive?
Hotels are meant for short-term stays and charge higher rates than rented houses or flats. According to the NAO, the cost of housing asylum seekers in hotels is seven times higher per person than dispersal accommodation. This puts a huge strain on the government’s budget.

Impact on local economies:
Using hotels for asylum accommodation can also disrupt local economies. For example, when hotels are taken out of the tourism sector, it can hurt local businesses and jobs. Some communities have protested against new hotel accommodations, while others have called for more compassionate policies.

Recent Policy Changes and Pilots

Room-Sharing Expansion
In June 2023, the government expanded room-sharing policies in hotels. This means that unrelated same-sex adults may be required to share a room, which has created more places but also raised concerns about privacy and safety.

Move-On Period Extension
The “move-on period” is the time refugees have to secure housing and benefits after a positive asylum decision. In December 2024, the government launched a pilot to extend this period from 28 to 56 days. This pilot runs until June 2025, and advocacy groups are pushing for the change to become permanent. They argue that 28 days is not enough time for people to find stable housing and avoid homelessness.

Closure of Hotels
Since the peak in September 2023, the government has closed many hotels used for asylum accommodation. However, as of November 2024, 220 hotels were still in use. The Home Office says it will continue to reduce this number, but acknowledges that ending hotel use entirely is not possible in the short term.

The Asylum Backlog: A Persistent Challenge

What is the asylum backlog?
The asylum backlog refers to the number of cases waiting for a decision. As of March 2025, there were 78,745 cases covering 190,536 people. This is the lowest level since September 2021, but it is still a huge number.

Why does the backlog matter?
A large backlog means that people wait longer for decisions, which keeps them in temporary accommodation—often hotels—for months or even years. This delays their ability to rebuild their lives and puts more pressure on the accommodation system.

What is being done?
The government has made efforts to speed up decision-making and reduce the backlog, but progress is slow. According to analysis by VisaVerge.com, the backlog remains a major obstacle to ending hotel use.

Oversight, Transparency, and Criticism

National Audit Office Findings
The NAO found that refurbishing large sites, such as former military bases, has cost more than using hotels. The Home Office’s oversight of contracts has also been weak, with unreliable self-reporting from providers and limited inspections.

Institute for Government Perspective
The Institute for Government welcomed the Home Office’s recent termination of underperforming hotel contracts but stressed the need for broader reform and better contract management.

NGO and Advocacy Group Views
Groups like the Refugee Council and HIAS+JCORE have called for:

  • Improved living conditions for asylum seekers
  • Greater transparency in accommodation decisions
  • Expanded legal routes for seeking asylum
  • A permanent extension of the move-on period

Parliamentarians’ Concerns
Some Members of Parliament have expressed disappointment at the reopening of hotels and called for more community engagement and transparency.

Community Impact and Public Response

Mixed Reactions
The use of hotels for asylum accommodation has sparked mixed reactions across the UK. Some communities have protested against new hotel accommodations, citing concerns about resources and local services. Others have shown support for asylum seekers and called for more humane policies.

Local Authorities’ Role
With the full dispersal model, local authorities are increasingly required to house asylum seekers. Some councils have raised concerns about the impact on local services, while others have worked to welcome new arrivals.

Looking Ahead: What’s Next for Asylum Accommodation?

Ending Hotel Use
While the number of asylum seekers in hotels is falling, officials and experts agree that a complete end to hotel accommodation is not likely soon. The ongoing asylum backlog, new arrivals, and limited alternative housing mean that hotels will remain part of the system for the foreseeable future.

Move-On Period Review
The pilot extension of the move-on period to 56 days will be reviewed in June 2025. Advocacy groups hope this will become permanent, giving refugees more time to find stable housing and avoid homelessness.

Large Sites and Vessels
Only one large site—Wethersfield in Essex—is currently operational. Plans to expand the use of large sites or vessels have faced challenges due to high costs and concerns about suitability.

Policy Reviews and Reforms
The Home Office is reviewing contracts and considering further reforms to improve oversight and value for money. Systemic reform is needed to address the root causes of the asylum backlog and reduce reliance on expensive, unsuitable hotel accommodation.

Practical Guidance for Asylum Seekers and Supporters

  • If you are seeking asylum in the UK, you can find official guidance on accommodation and support on the UK government’s asylum support page.
  • If you have received a positive asylum decision, be aware of the move-on period and seek help from local authorities or charities to secure housing and benefits.
  • If you are supporting asylum seekers, organizations like the Refugee Council and HIAS+JCORE offer resources and advocacy.

Conclusion: Progress, But No Quick Fix

The UK has made real progress in reducing the number of asylum seekers living in hotels, but a complete end to hotel accommodation is still some way off. The government faces a difficult balancing act—meeting its legal and humanitarian obligations, managing public opinion, and controlling costs. For asylum seekers, the wait for a stable home continues, with many still facing long periods in unsuitable accommodation.

Key Takeaways:

  • Hotel use for asylum seekers has dropped by 42% since September 2023, but 32,345 people remain in hotels as of March 2025.
  • The asylum backlog is falling but still stands at 78,745 cases, keeping pressure on the system.
  • Living conditions in hotels are widely criticized, and costs remain high.
  • Policy changes like the full dispersal model and extended move-on period aim to improve the situation, but challenges remain.
  • A complete end to hotel accommodation is not expected soon, with further reforms and reviews underway.

For the latest updates and official information, visit the UK government’s asylum support page.


References:
– Home Office Immigration Statistics, May 2025
– National Audit Office Reports
– Refugee Council
– Institute for Government
– VisaVerge.com

Learn Today

Asylum Seekers → People fleeing persecution who request protection under UK immigration laws.
Dispersal Accommodation → Long-term shared housing allocated across regions for asylum seekers during claim processing.
Asylum Backlog → The volume of unresolved asylum cases awaiting decisions within the UK system.
Move-On Period → Time given to refugees to find housing and benefits after positive asylum decisions.
Section 95 Support → UK government provision allowing eligible asylum seekers housing and financial assistance.

This Article in a Nutshell

The UK is steadily reducing asylum seekers housed in hotels, down 42% since 2023, but system pressures and backlog delay ending this practice. Hotels remain costly and criticized. New policies like full dispersal and longer move-on periods aim to improve housing fairness and reduce hotel reliance in the asylum system.
— By VisaVerge.com

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Robert Pyne
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Robert Pyne, a Professional Writer at VisaVerge.com, brings a wealth of knowledge and a unique storytelling ability to the team. Specializing in long-form articles and in-depth analyses, Robert's writing offers comprehensive insights into various aspects of immigration and global travel. His work not only informs but also engages readers, providing them with a deeper understanding of the topics that matter most in the world of travel and immigration.
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