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Asylum accommodation

Asylum hotels cost £2.1bn a year.

Asylum hotels cost you £2.1bn a year. Where people are placed, who profits, and what it really costs, audited numbers, not rumours.

Hotel cost / year £2.1bn
People in hotels 20,885
Largest host region North West (20%)
Hosted in ~89% of councils
The evidence

14 figures, each with its official source.

20,885
People in hotels

21% of supported asylum seekers; down 35% year-on-year.

72,768
In dispersal / other housing

75% of the total, most supported asylum seekers are not in hotels.

97,519
Total in asylum support housing
£119
Hotel cost per person / night

Migration Observatory estate average, it fell within the year as occupancy rose. The Home Office's own point estimate is higher at ~£145/night (used in the value-for-money figures); both are averages over different bases. Either way, roughly six times the ~£23 dispersal rate.

Migration Observatory2024–25 (down from £162)
≈185
Hotels in use for asylum

Not in a statistical release, from ministerial statements/press releases, and the figure changes. ~210 in mid-2025, ~185 by April 2026; peak was over 400.

GOV.UK: Home Office news releaseApril 2026 (peak was 400+)
£2.1bn
Hotel cost per year

Hotels only, FY2024-25 (≈£5.75m/day). From the NAO Oct 2025 Overview: NOT the May 2025 contracts report, whose £1.3bn covered only the first seven months.

NAO: Home Office 2024-25 OverviewFY 2024–25 (down from £3.0bn)
3 firms, ≈£15.3bn
Accommodation contractors (10-yr value)

Clearsprings ≈£7.3bn · Serco ≈£5.5bn · Mears ≈£2.5bn Originally estimated at £4.5bn; now £15.3bn over ten years. Hotels are ~76% of contract cost but house ~35% of people.

NAO, asylum accommodation contractsAASC 2019–2029, est. £15.3bn total
By 2029 (end of Parliament)
Target to end hotel use

A Parliament-term horizon, not a statutory deadline. Reforms projected to cut asylum costs by ≥£1bn/yr by 2028-29.

NAO / HM TreasurySpending Review, June 2025
North West: 19,578 (≈20% of the UK total)
Largest region

Then London (13,687) and the West Midlands (11,969).

Glasgow City: 3,870 supported
Largest host council

Almost all dispersal housing, not hotels. Next: Birmingham (2,142), Liverpool (2,053).

14
UK rate

About 0.14% of residents. Highest regions: North East and North West (~25–26 per 10,000).

Home Office31 Mar 2026
Glasgow: 59.5 per 10,000 (≈1 in 168 residents)
Highest-rate area

Top-rate councils cluster in Lancashire, Greater Manchester and the West Midlands, cheaper-housing areas where providers procure accommodation.

58%
London reliance on hotels

Share of London's accommodated asylum seekers in hotels, the highest of any region (vs 21% nationally). Near airports (Hillingdon, Hounslow) it exceeds 85%.

≈89% of councils
Spread across councils

Now hosted in ~89% of local authorities (up from ~25% in 2014) But highly concentrated: about half of councils have fewer than 100 supported asylum seekers, and 18 have none.