The UK government has announced the closure of eleven more hotels used to accommodate asylum seekers as part of a broader initiative to transition individuals to alternative housing. This strategic shift is expected to yield annual savings of £65 million and has successfully reduced the number of hotels in use to fewer than 190, a significant decline from the peak of approximately 400 during the previous Conservative administration.
Closure of Problematic Sites
Among the latest closures, notable establishments include the Britannia Hotel in Wolverhampton and the OYO Lakeside in St Helens, both of which had been focal points for public protests. Borders Minister Alex Norris expressed that the use of hotels was intended as a temporary measure but has “spiralled out of control,” placing an unsustainable financial burden on taxpayers and local communities alike.
Norris elaborated, stating, “We are shutting them down by moving people into more basic accommodation, scaling up large sites, and removing record numbers of individuals with no right to remain. This is about restoring control, ending waste, and returning hotels to the community for good.”
Commitment to End Hotel Accommodation
The Home Office has indicated that further closures will be forthcoming, reinforcing the government’s commitment to eliminate the use of hotels for asylum seekers by the next general election. Some individuals have already begun relocating to alternative sites, including repurposed army barracks. Specifically, around 350 asylum seekers have been accommodated at the former barracks in Crowborough, East Sussex, which opened its doors in January.
Despite these efforts, the number of asylum seekers residing in hotels remains significant. As of the end of 2025, the figure stood at 30,657, a decrease of 15% from September but still above the pre-2024 election record low of 29,561. The peak was reached in September 2023, with 56,018 individuals housed in hotels.
Dispersal Accommodation on the Rise
In conjunction with the reduction of hotel accommodations, there has been a notable increase in the number of individuals residing in “dispersal accommodation.” This type of housing, which includes privately managed properties, has seen an uptick of nearly 3,000 over the course of 2025. Such accommodation is reserved for asylum seekers who would otherwise be homeless.
Shadow Home Secretary Chris Philp has raised concerns regarding the current state of asylum accommodation, asserting that more individuals are living in hotels now than during the election period. He accused the government of disguising the true numbers by transitioning individuals into residential apartments, which he claims are consequently unavailable for young people attempting to enter the housing market. Philp further argued that the government’s immigration policies, particularly concerning small boat crossings, have led to a dramatic increase in asylum seekers.
The Future of Asylum Policy
The Conservative government’s strategy includes plans to withdraw from the European Convention on Human Rights (ECHR) to facilitate quicker deportations of illegal immigrants, a move Philp claims Labour lacks the resolve to implement. This contentious political backdrop sets the stage for an ongoing debate about the effectiveness and morality of current asylum policies.
Why it Matters
The government’s decision to close asylum hotels reflects a complex interplay of fiscal responsibility, public sentiment, and political strategy. As the number of asylum seekers continues to challenge existing systems, the implications of these policy changes will resonate throughout the communities affected, shaping the landscape of immigration and housing in the UK for years to come. As the political climate shifts, the outcomes of these policies will be pivotal in determining the course of future migration debates and the government’s overall approach to asylum seekers.
