The UK Home Office plans to move asylum seekers from hotels to modular pop-up buildings in an effort to tackle the migrant accommodation crisis and cut rising costs.
The Home Office is reportedly preparing to move asylum seekers from expensive migrant hotels into modular pop-up buildings as part of a new accommodation strategy. Government officials are expected to announce the detailed plan within weeks, in an effort to address the ongoing asylum accommodation crisis.
Government Turns to Modular Buildings for Faster Solutions
According to Housing Secretary Steve Reed, the government is exploring the use of modular or pop-up housing units—similar to those used in the prison system—to provide faster, cost-effective accommodation for asylum seekers. These temporary structures typically include en-suite bathrooms, beds, desks, and televisions, offering a self-contained living space.
Speaking on Monday, Reed emphasized that modular construction allows new sites to be established much more quickly than traditional buildings.
“You can use modular forms of building,” he said. “They can go up much faster, and we can use planning processes to ensure there are no unnecessary delays. I’m expecting announcements on this within weeks.”
Ending the Use of Hotels Entirely
The Home Office aims to completely phase out the use of hotels for asylum housing. Reed also mentioned that the government is reviewing former military bases as potential sites.
“We could use large sites to accommodate people and end the use of hotels entirely,” he added. “That’s where we want to get to.”
Earlier in September, then-Home Secretary Yvette Cooper had also hinted that asylum seekers might be housed in modular buildings located on industrial or ex-military sites. Meanwhile, construction firm Portakabin has expressed interest in collaborating with the Home Office to provide emergency prefabricated accommodation.
Billions Lost in Mismanagement
The announcement follows a scathing report revealing that the Home Office has wasted billions of pounds on migrant hotel contracts due to mismanagement and lack of oversight. The cross-party committee of MPs also found that officials failed to recover millions in excess profits from private companies managing asylum housing.
One example cited was the £15.4 million purchase of the former Northeye prison site, which was later deemed unsuitable for use. Despite clear warnings about the cost and impracticality of making the site habitable, the Home Office went ahead with the acquisition.
Plans for Medium-Sized Sites
In addition to pop-up buildings, the Home Office intends to develop medium-sized sites that can house between 200 and 700 asylum seekers. Potential locations include empty tower blocks, training colleges, and unused student accommodation.
However, the Home Affairs Committee has expressed concerns that officials still lack a clear and achievable plan to deliver such projects on the necessary scale. Many proposed sites have already encountered planning and investment hurdles.
The Expanding Cost of Asylum Accommodation
As of June 2025, around 103,000 people were being housed under the Home Office’s asylum accommodation program. Although the number of asylum seekers in hotels has dropped to 32,059, it remains higher than the previous year.
MPs also noted that large-scale asylum sites could end up more expensive than hotel stays, warning the government not to repeat past mistakes. The projected cost of accommodation contracts has already tripled—rising from £4.5 billion in 2019 to £15.5 billion by 2029.
Moving Toward a Sustainable Asylum System
Currently, the only large-scale asylum site in operation is the former RAF Wethersfield base, though the Home Office is working to open additional similar facilities. The government insists its long-term goal remains clear: to end the reliance on hotels and create sustainable, purpose-built housing solutions for asylum seekers.
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