New Home Office figures revealed 68,538 asylum seekers are living in 'dispersal accommodation', up from 66,232 three months ago.

09:28, Thu, Feb 26, 2026 Updated: 09:42, Thu, Feb 26, 2026

Migrants Arrive In Ramsgate After Attempting Small Boat Crossings

Asylum accommodation has sparked fury across the country (Image: Getty)

The number of migrants living in houses, flats and bedsits has increased as Labour scrambles to close hotels.

New Home Office figures revealed 68,538 asylum seekers are living in 'dispersal accommodation', up from 66,232 three months ago.

And the number of asylum seekers living in hotels has finally started falling.

It has dropped from 36,273 to 30,657. But it is still higher than when Labour won the General Election.

The Express has previously revealed how the number living in ‘dispersal accommodation’ could hit 100,000, under the Home Office’s controversial contracts with Serco, Mears and Clearspring Ready Homes.

Serco, which provides homes in the North West of England, the Midlands and East of England, warned communities that migrants moving into houses, flats and bedsits “will continue to be a central part of the asylum accommodation system” – despite the Home Office currently focusing on using military bases.

Under one proposal, the Government could pay councils to buy or renovate properties. They would then be leased out, and once the crisis is under control, they could be used as part of the housing stock.

Dispersal accommodation costs £23.25 per person per night, according to Home Office documents, while hotels cost on average £144.98.

Service User Demand Plans – which set out how many people can be accommodated in each region - allocated 114,791 spaces for asylum seekers across the country.

Asylum accommodation provider Serco wants the Home Office to force town halls to accept more houses of multiple occupancy (HMOs) in their areas.

The company said stuffing “three to six” people into a single property “offers the best value for money” for taxpayers.

Serco told the Public Accounts Committee: “The nature of the current cohort means that HMOs for three to six occupants offers the best value for money for Dispersed Accommodation.

“However, we note wider community concerns about the wider proliferation of HMOs, resulting in increased adoption by local authorities of Article 4 restrictions, limiting our ability to procure HMOs.

“While we continue to engage with local authorities to find solutions, we believe there is a greater role for the Home Office to direct local authorities on this matter that would allow service providers to increase low-cost bedspaces.”

Article 4 restrictions force landlords to get planning permission before converting a property into a HMO.

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