UK Home Office to Close 11 Asylum Hotels in Major Policy Shift

The UK Home Office is set to announce the closure of 11 asylum hotels this week as part of a broader initiative to eliminate the use of such accommodations by the end of the current parliamentary session. This decision is part of the government's strategy to address illegal immigration and follows a controversial reliance on hotels that began during the Covid-19 pandemic. Currently, approximately 30,000 asylum seekers are housed in nearly 200 hotels, costing taxpayers around £8 million daily.

The GuardianThe IndependentUK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel AccommodationReview to assess Home Office engagement with local authorities on asylum accommodation plansDunfermline Press

The use of hotels for asylum seekers has faced significant criticism, with opponents arguing that these facilities are unsuitable for long-term accommodation and contribute to community tensions. Protests, some of which turned violent, have occurred outside these hotels, fueled by claims of luxury living conditions for asylum seekers. The Home Office's plan to close these hotels aligns with a new contract initiative valued at approximately £10 billion, known as Future Asylum Contracts Accommodation (FACA), which aims to diversify accommodation providers and prohibit the routine use of hotels.

The GuardianThe IndependentUK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel AccommodationDunfermline PressReview to assess Home Office engagement with local authorities on asylum accommodation plans

The Home Office has reported a nearly 20% reduction in the asylum hotel population over the past year, which has resulted in a cost saving of nearly £1 billion. The closures are expected to save an additional £45 million annually. However, critics, including Gideon Rabinowitz from Bond, have condemned the diversion of overseas aid funds to support asylum accommodation in the UK, arguing that this has led to cuts in vital humanitarian programs abroad.

The Guardian

A Home Office spokesperson stated, “This government is removing the incentives drawing illegal migrants to Britain and ramping up removals of those with no right to be here.” They emphasized the need to transition asylum seekers into more basic accommodations, including repurposed military sites. Rabinowitz highlighted the adverse effects of budget reallocations, noting, “Funding to support communities facing conflict and crisis worldwide fell by over £1 billion in 2025.”

The GuardianThe IndependentUK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel AccommodationReview to assess Home Office engagement with local authorities on asylum accommodation plansDunfermline Press

Local authorities and refugee NGOs have expressed concerns regarding the Home Office's engagement strategy in planning asylum accommodations. The Independent Chief Inspector of Borders and Immigration has initiated an inspection to evaluate the effectiveness of the Home Office's interactions with local councils. Some councils have taken legal action to block the use of local hotels for asylum seekers, citing community unrest and inadequate consultation.

Review to assess Home Office engagement with local authorities on asylum accommodation plansHome Office asylum accommodation under reviewThe GuardianThe IndependentUK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel AccommodationDunfermline Press

The Home Office is expected to hold a private “industry day” for potential accommodation providers this week, with details kept confidential. The outcomes of this meeting will likely shape the future of asylum accommodation in the UK, as the government seeks to implement its new contract framework by September 2029.

The Independent

• “ A Home Office spokesperson said: “This government is removing the incentives drawing illegal migrants to Britain and ramping up removals of those with no right to be here.” — Home Office Spokesperson

The Guardian

• “Funding to support communities facing conflict and crisis worldwide fell by over £1bn in 2025, as 18% of the budget continued to be diverted to cover asylum costs in the UK,” — Gideon Rabinowitz, Director of Policy and Advocacy at Bond

The Guardian