Cost of a single migrant staying in asylum hotel revealed as radical plan is put forward

More than 7,000 migrants are thought to have crossed the English Channel this year. Research shows that putting one migrant in a hotel costs over £54,000 a year.

The Home Office is under pressure because of how expensive it is to house asylum seekers in hotels.

The Chartered Institute of Housing (CIH) has suggested that the government give councils one-time grants to buy houses instead, so migrants can be moved out of hotels. According to them, shared housing would cut costs for taxpayers.

CIH explained to MPs that hotel stays cost around £54,020 per person every year. In comparison, housing three people in a three-bedroom house could save over £150,000 a year.

However, this suggestion could stir up debate since the UK is already facing a housing shortage. The Local Government Association warned that the demand for housing is high, and adding more pressure could make it harder for families to find homes.

Conservative MP Neil O’Brien said the number of illegal small boat crossings has gone up under Keir Starmer, and this puts more strain on local communities.

He added that many people will think it’s unfair for new arrivals to get homes while others who have lived and paid taxes in the UK for years are still waiting.

Reform UK MP Lee Anderson said it’s disrespectful to young Brits working hard to buy their first home to hear that migrants might get homes first. He argued that if the government detains and deports those who arrive illegally, there would be no need to use hotels, and it would save taxpayers a lot of money.

CIH said the government had taken too long to fix the hotel situation. Back in the summer of 2023, 48,000 asylum seekers were in hotels. CIH said that if the government had started buying homes then, each one would have already paid for itself and be saving over £150,000 a year now. If 2,000 homes had been bought in the last year, the government could be saving £300 million today.

The number of asylum seekers in hotels has now dropped to just under 36,000. If 16,000 homes had been bought in 2023, 12,000 would still be in use today for asylum housing.

CIH stressed that using hotels is extremely expensive. Councils are also spending around £1.7 billion on temporary housing. According to the National Audit Office, putting someone in a hotel costs £145 per night, while using regular housing like bedsits or flats costs only £14.

John Perry from the CIH defended the idea, saying the government wants to reduce spending on asylum housing. Buying homes would be cheaper than hotels. Once asylum cases are dealt with, those homes could be used for homeless families, improving their living situations and saving money.

When asked about aid and asylum hotels, Keir Starmer said he’s determined to reduce the hotel costs and is looking for ways to manage aid spending without waiting too long to act.