The UK’s asylum crisis is placing immense strain on local communities, schools, and housing markets, according to desperate pleas from councils across the country. Despite Labour’s election promise to “end asylum hotels,” the number of asylum seekers housed in such accommodations has risen to 38,079, up from 35,651 in September 2023 and 29,585 in June 2023.
Since the July 4 election, more than 28,000 people have arrived in the UK via small boats, with 5,025 arriving in 2024 alone—a 24% increase compared to the same period last year.
Local councils have warned of the devastating impact on their communities, with schools overwhelmed by the influx of children and housing markets destabilized by the procurement of rental properties for asylum seekers.
Businesses contracted by the government to find housing for asylum seekers are reportedly outbidding local residents, driving up rents and exacerbating housing shortages.
The Home Office’s policy aims to limit the number of asylum seekers in any area to one per 200 local residents, known as the “cluster limit.
However, this average figure masks significant concentrations in specific wards, particularly in deprived areas, leading to housing shortages and social tensions.
Middlesbrough Council highlighted that asylum accommodation is often concentrated in a small number of wards, increasing the risk of community conflict.
Councils have also raised concerns about the lack of coordination and communication from the Home Office, with many authorities only learning about new asylum placements after the fact.
This has left local services, including schools, healthcare, and housing, struggling to cope. Essex County Council reported extreme pressure on school places in Chelmsford due to the placement of large numbers of children in contingency accommodation.
The economic impact of using hotels to house asylum seekers has also been significant. Eastbourne Borough Council noted that four hotels in its tourism zone along the seafront were repurposed for asylum accommodation, causing major concerns among other hoteliers about the impact on tourism.
Coventry City Council criticized the Home Office contractor Serco for driving up rents by procuring properties for asylum seekers, making it virtually impossible for local residents to secure affordable housing. Similar concerns were echoed by Kent County Council, which warned that the procurement of properties by Home Office contractors is exacerbating the housing crisis.
The strain on local services has been compounded by a lack of funding and resources. The Local Government Association called for expanded council funding and better engagement with local authorities to support the integration of asylum seekers and reduce the risk of violence. Last summer’s riots, fueled by tensions over asylum accommodations, serve as a stark reminder of the potential for social unrest.
Refugee Action and the Refugee Council have criticized the current system, arguing that housing asylum seekers in hotels is detrimental to both refugees and local communities. They called for investment in social housing and community assets, as well as allowing asylum seekers to work while their claims are processed.
The Home Office has acknowledged the challenges, stating that it is committed to ending the use of asylum hotels and reducing the overall cost of asylum accommodation. However, councils and advocacy groups argue that more needs to be done to address the root causes of the crisis and support local communities.
