In recent discussions regarding the housing crisis in the UK, Business Secretary Jonathan Reynolds acknowledged the public’s intense frustration regarding the impact of the asylum seeker system on local housing availability. Speaking to the BBC, he addressed the significant competition between the Home Office, which is responsible for providing temporary accommodations for asylum seekers, and local councils that seek to house homeless individuals. This situation has escalated as the housing supply becomes increasingly strained.
Reynolds emphasized that the core solution lies in multiple strategies, including the construction of new homes, expediting the processing of asylum applications, removing individuals without legal rights to remain in the UK, and curbing irregular boat crossings. These actions aim to alleviate the demands placed on housing resources while simultaneously addressing the broader issues within the asylum system.
Moreover, the recent remarks made by the Labour leader, Sir Keir Starmer, drew criticism from Conservative politicians. Starmer noted that there exists adequate housing within many local authorities to support temporary accommodation for homeless families, a statement that Sir James Cleverly, the new shadow housing secretary, deemed to exacerbate the frustrations faced by those striving to secure housing. This public sentiment has manifested in visible demonstrations over the housing of asylum seekers, notably at a hotel in Epping.
Concerning homelessness, the Prime Minister made a statement during the Liaison Committee, which comprises senior MPs, indicating there were numerous facilities available for local authorities to utilize in managing housing needs. In response to Labour MP Dame Meg Hillier’s inquiry about solutions to homelessness in light of the rising costs of temporary accommodations, the Prime Minister claimed that many options for utilization are available, although specifics were not immediately provided.
The discussion continued as Reynolds reiterated that the government is aware of the urgent need for solutions to the housing crisis. The Chair of the Housing Committee, Florence Eshalomi, confirmed that councils are indeed at a breaking point regarding housing supplies. She further revealed that local councils were projected to spend £2.3 billion on temporary accommodations in the 2023-2024 period, with numbers in temporary housing rising by 11% over the previous year.
Recent figures indicate that over 123,000 families are living in temporary accommodations in England, which include hotels, hostels, and other interim solutions. The law mandates that the government provide housing for asylum seekers who find themselves destitute while waiting for the resolution of their applications. Typically, asylum seekers face restrictions preventing them from working until their claims are processed.
The data shows a growing reliance on hotels as a solution for this population since 2020. As of March 2025, roughly 32,345 individuals were accommodated in such hotels, illustrating a reduction from previous higher figures but still revealing significant numbers in need of housing. Notably, expenditures on hotel accommodations for asylum seekers decreased by a third from £3 billion to £2.1 billion, attributed largely to the government’s efforts to transition asylum seekers into lower-cost housing options.
Reynolds highlighted that the intention is to ultimately phase out hotel usage for asylum seekers, noting that from a peak of 400 hotels, the number currently in use stands at 200. However, he stressed that merely shifting individuals into different types of accommodation is not a sustainable solution. The substantive approach involves a more streamlined system for managing asylum claims to ensure individuals who should not remain in the UK are identified and processed accordingly, avoiding prolonged uncertainty and instability.
In conclusion, the ongoing dialogue illustrates the complexities and challenges of the UK’s housing market, where temporary accommodations for asylum seekers significantly impact the capacity of local authorities to manage homelessness. The government’s strategies aimed at addressing these multifaceted issues hinge not only on increasing housing stock but also on providing timely and effective solutions to manage both asylum processing and homeless support effectively.
