1. VisaHQ.com
  2. /
  3. Global Mobility News
  4. /
  5. United Kingdom
  6. /
  7. UK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel Accommodation

UK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel Accommodation

Apr 13, 2026
·
UK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel Accommodation
The Home Office will this week confirm the closure of 11 hotels currently housing asylum seekers, the first large-scale withdrawal from the expensive stop-gap accommodation that mushroomed during the pandemic. Labour ministers have promised to end the practice entirely before the next general election, arguing that hotels are unsuitable for long-term stays, fuel community tensions and drain public funds. Around 30,000 people are still living in almost 200 hotels, costing the taxpayer roughly £8 million a day. Officials say numbers have fallen 20 % in the past year and that the latest closures will save about £45 million annually. Those being moved will be transferred to “basic” accommodation including repurposed military sites and larger reception centres built to handle new arrivals more efficiently. Behind the scenes the department is briefing suppliers on a £10 billion, seven-year tender known as the Future Asylum Contracts Accommodation (FACA). The next generation framework aims to diversify providers, introduce tougher performance clauses and—critically—prohibit the routine use of hotels. Existing suppliers fear that increasing the number of contractors could embed inefficiencies and push costs back up if economies of scale are lost.

UK Home Office to Shut 11 Asylum Hotels This Week in Major Push to End Hotel Accommodation


Against this backdrop, companies arranging international assignments may find value in partnering with VisaHQ, an online visa and passport processing service that guides employers and travellers through the latest UK entry requirements, offers digital document checks and provides live status updates—helping ensure staff arrive with the correct paperwork and stay compliant. Visit https://www.visahq.com/united-kingdom/ for details.

For corporates that relocate staff to the UK, the shift signals a tougher stance on irregular migration but also a bid to cut the political temperature around asylum. Employers should expect continued scrutiny of right-to-work checks and sponsorship compliance as ministers try to reassure voters that the system is under control. Travel managers moving employees from high-risk regions may also face greater pressure to demonstrate genuine business need and accommodation plans that do not burden the state. In the medium term, moving away from hotels could free up thousands of rooms in key business hubs—welcome news for companies grappling with tight conference and project-based housing markets. But support organisations warn that large, institutional sites risk becoming “detention in all but name” unless legal aid, healthcare and integration services keep pace with the changes.

British Visas & Immigration Team @ VisaHQ

VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.

×