Home Office expected to close down another 11 asylum hotels
The government is expected to close 11 more so-called “asylum hotels” next week as it tries to move faster in combating illegal immigration.
The closure of the controversial hotels is part of the government’s plan to end hotel accommodation for irregular migrants altogether and is linked to a meeting this week on a new agreement on accommodation for asylum seekers.
The hotels have become a magnet for right-wing anti-immigrant protesters, centered around allegations of attacks on women and girls by asylum seekers.
The Bell in Epping, in particular, became the focus of far-right demonstrations after the Conservative Party-led local council unsuccessfully prevented it from being used as a holding area for asylum seekers awaiting their applications to be assessed.
Latest government statistics show around 200 hotels are in use, accommodating around 30,000 refugees. More than 70,000 refugees live in shared housing or other types of accommodation such as military barracks.
Accordingly GuardThe Home Office will this week hold a special event described as an “industry day” for potential future shelter providers.
The ministry did not disclose details of the time and venue, and those attending were reportedly required to sign a non-disclosure agreement (NDA).
The meeting is understood to be about re-tendering asylum contracts from 1 September 2029 to 31 August 2036, with the option of a possible extension to 31 August 2039. The new contract, known as Future Asylum Contracts Accommodation, is valued at around £10bn and will deliver on the government’s aim to move away from reliance on hotel accommodation.
Controversially, the Home Office is using part of its already reduced overseas aid budget to fund the accommodation of asylum seekers, a practice known as “donor refugee costs”.
These costs were around £2.8 billion in 2024 and £2.4 billion in 2025.
The Home Office was asked to comment on the allegations but did not respond.
A Home Office spokesman said Guard: “This government is removing the incentives that attract illegal immigrants to the UK and accelerating deportations of those who have no right to be here. That’s why we are closing all asylum hotels and moving asylum seekers to essential accommodation, including former military sites.
“The population in asylum hotels fell by nearly 20 per cent last year, down 45 per cent since the peak under the previous government, and costs have fallen by around £1bn.”
