Recommendation 23

We also questioned departments on the increasing pressure on asylum accommodation and social housing across the UK. Shortages of dispersal accommodation have contributed to continued reliance on hotels, and efforts to expand alternative options, such as large sites, have faced operational challenges.56 The Home Office told us it had increased utilisation of existing accommodation by returning vacant rooms to use and exploring additional forms of accommodation, including former student buildings and government estate.57 51 Qq 73-74 52 C&AG’s Report, para 2.30 53 C&AG’s Report, para 2.31 54 Letter from the Second Permanent Secretary of the Home Office relating to the inquiry into the asylum system, dated 6 February 2026 55 Letter from the Acting Permanent Secretary of the Home Office relating to the inquiry into the asylum system, dated 25 February 2026 56 C&AG’s Report, Figure 6 57 Q 27 17 3 Asylum accommodation and commercial arrangements Accommodation strategy and impact on local authorities