UK Asylum Seeker Hotel Policy Change: New Rules Explained

The UK government is systematically winding down the use of hotels to house asylum seekers, driven by high costs and a political commitment to end the practice by 2029. Since the summer of 2023, when more than 400 hotels were in use, the number has dropped to fewer than 210 by September 2025, according to the Home Office. This article explains the policy shift, the current housing arrangements, and what the changes mean for people seeking asylum in the UK.

Last checked: 2026-08-20

Policy change: Home Office halved transition time from 56 to 28 days (Aug 2025) · Hotel use end target: 2029 · Weekly allowance: £49.18 per person · Top nationality: Iranian, Albanian, Afghan (inputs)

What is the new rule for asylum seekers in the UK?

The most significant policy development is the government’s pledge to end the use of hotels for asylum seekers by the end of this Parliament. GOV.UK confirmed in August 2026 that 13 more hotels had been exited and returned to local communities, saving an estimated £51 million. The closures are phased monthly, with residents given a minimum of five days’ notice before moving to other accommodation.

“We are clear this is not a good use of public money, and we remain fully committed to ending the use of hotels as asylum accommodation completely and as soon as possible.”

— Home Office, ministerial briefing

The Home Office published an updated Allocation of Asylum Accommodation Policy on 29 July 2026, setting out the criteria for housing assignments. Short-, medium- and longer-term alternatives include former student accommodation and government-owned properties, decided site by site.

What this means: the rule is not a single decree but a rolling programme of closures backed by funding and legal deadlines. The pace depends on sourcing alternative housing and reducing the asylum backlog.

Do asylum seekers get free housing in the UK?

Yes, the Home Office provides accommodation to asylum seekers who would otherwise be destitute, under section 95 of the Immigration and Asylum Act 1999. This includes hotels, private homes, and dispersal accommodation. Hotels are classed as contingency accommodation — used when standard dispersal housing is not available.

According to the Migration Observatory, the share of asylum seekers in hotels fell from 42% at the end of March 2023 to 21% by March 2026. The remaining residents are housed in shared flats, houses, and other properties, often under the dispersal scheme that allocates people to local authorities across the UK.

“We all desire the same outcome, which is to move away from asylum hotels.”

— Dame Angela Eagle, Border Security and Asylum Minister, BBC News

The implication: free housing continues, but the type is shifting rapidly away from hotels toward cheaper, more conventional accommodation.

How much money do asylum seekers get a week in the UK?

Asylum seekers who receive accommodation also qualify for a weekly cash allowance to cover essential living costs. The rate is set by the Home Office and is reviewed periodically. While the specific amount is not detailed in the policy documents cited here, the Migration Observatory notes that the far larger cost is the accommodation itself: hotel rooms averaged £170 per person per day in 2024/25, compared with £27 per day for other accommodation types.

The trade-off: the weekly cash support is modest, but when combined with free housing, it provides a basic safety net for those awaiting a decision on their claim.

Why does the UK accept so many refugees?

The UK processes over 80,000 asylum applications per year (most recent annual data), according to the Migration Observatory. The obligation to consider claims stems from the 1951 UN Refugee Convention and domestic legislation. Nationalities among applicants have shifted: Iranians, Albanians, and Afghans are currently the most common.

High application numbers, combined with a shortage of dispersal housing, led to the widespread use of hotels from 2021 onward. The government has allocated £200 million to reducing the backlog and moving people out of hotels, as announced by Chancellor Rachel Reeves in June 2025 (BBC News).

Why this matters: the number of new arrivals directly affects how quickly hotels can be closed. Even with reduced hotel stock, the backlog means some people will still be accommodated in contingency housing for months.

Where are asylum seekers housed in the UK?

Asylum accommodation is spread across the UK through the dispersal scheme, with hotels concentrated in certain regions. The Migration Observatory reports that London, the South East, and the East of England have relied more heavily on hotels, while northern regions have used more dispersal housing.

BBC News previously reported that Scotland had fewer hotels than the South East; Glasgow was a main dispersal area. Wales had very low hotel numbers — two in Cardiff at the time of that report.

The Home Office has said that hotel closures will be phased, with alternative accommodation sourced site by site. Legal challenges have occasionally delayed closures, as seen in the Epping Bell Hotel case where the Court of Appeal refused permission to challenge an injunction decision in March 2026.

The bottom line: the geographic distribution is uneven and fluid, with the South East still holding a disproportionate share of hotel rooms as the exit programme proceeds.