UK grapples with hotel housing as asylum claims peak

New data show the government is struggling to house asylum seekers, process claims and curb small boat arrivals.

UK grapples with hotel housing as asylum claims reach peak

New Home Office data show 32,059 asylum seekers staying in hotels as of 30 June, up from 29,585 in June 2024. The government’s plan to move people into cheaper residential housing by dispersing them across more councils has been slowed by local opposition and court bottlenecks. The cost of hotel accommodation remains high, with the Home Office spending about £4.76bn on asylum last year and 76p of every £1 spent on hotels. Hotel costs are estimated at around £170 per night, compared with £27 for other types of accommodation.

Processing delays have left a large backlog of asylum claims. As of June, 102,866 people were awaiting a final decision, more than twice the level seen in March 2020, and the total backlog including appeals stood at 129,721 cases. The government has also pushed to reduce small boat arrivals, including a France-UK return deal that took effect in August. Officials say progress is being made, but analysts warn that success depends on reliable cooperation with partners and sustained funding.

The data reveal a policy tension at the heart of the asylum system: moving people away from hotels is cheaper on paper, but it requires speed in processing claims and broad public support. Local backlash, legal challenges and the sheer scale of claims complicate reforms that could bend costs downward. The backlog underscores a structural flaw: when decisions lag, the state must keep housing people who are destitute by international obligation, which inflates expenses and fuels criticism.

Looking ahead, the challenge is political as well as logistical. Speeding up decisions, expanding legal work rights, and ensuring fair housing across a wide geographic area will require more staff, clearer timelines, and community engagement. Without that, the plan to shrink hotel use risks becoming a perpetual budgetary drain and a political flashpoint, rather than a humane reform.

Highlights

Policy choices in the coming months will test Britain’s balance between humanitarian duty and public consent.