Asylum seekers make up almost half of net migration to Britain, new analysis has shown.
Official figures released by the Office for National Statistics (ONS) showed net migration - the difference between the number of people moving long-term to the UK and the number leaving - dropped to 204,000 in the year to June.
The number is down more than two-thirds (69 per cent) from 649,000 in the year to June 2024 and is the lowest for any 12-month period since 2021.
But the number of asylum seekers being housed temporarily in UK hotels has risen by 13 per cent in three months, despite Labour's pledge to shut migrant hotels.
The latest data from the Home Office found there were 36,273 people staying in such accommodation at the end of September while awaiting a decision on their asylum claims.
As fewer asylum seekers are leaving the UK in comparison to the number who are arriving, they now make up 44 per cent of the total net migration, according to analysis by Oxford University's Migration Observatory.
The research centre said: "The only major migration category where net migration did not decrease was asylum.
"Long-term immigration of asylum seekers was 96,000 in the year ending June 2025, making up 11 per cent of all immigration — double the five per cent share in 2019.
The number of asylum seekers being temporarily housed in the UK has risen, according to new Home Office data
|REUTERS
"Relatively few asylum migrants emigrate, so net migration of people seeking asylum was 90,000 in the same period, equivalent 44 per cent of total net migration.
"This share was also around double the pre-Brexit figure of 22 per cent in 2019."
Dr Ben Brindle, researcher at the Migration Observatory, highlighted the possible economic impact of the composition of migration, including as a result of support given to refugees.
He said: "The economic impacts of changes in migration depend on who is migrating, not just how many.
LATEST DEVELOPMENTS:
Figures released yesterday showed net migration dropped to 204,000 in the year to June
|PA/ONS
"Much of the decline in net migration is likely to have small impacts because it results from groups like care workers and family members of students, who fall in the middle of the spectrum: not the groups with the most positive or the most negative economic impacts.
"However, it does seem that the composition of migration has become less favourable from an economic perspective, with fewer people getting skilled worker visas and a higher share of refugees, who often need a lot of support."
Sir Keir Starmer yesterday said he was "determined" to close all asylum hotels and fulfil the Government's promise to end their use by the next election.
Speaking to GB News, the Prime Minister said: "Under the last government we saw the Boriswave.
The Prime Minister told GB News he was 'determined' to close all asylum hotels
|GB NEWS
"He promised that net migration would come down, but it quadrupled to nearly one million. That was unprecedented.
"It’s now down to 200,000 or so, and that’s a step in the right direction."
Home Secretary Shabana Mahmood said the "pace and scale" of migration has placed "immense pressure" on communities.
The Birmingham Ladywood MP explained: "Net migration is at its lowest level in half a decade and has fallen by more than two-thirds under this government.
"But we are going further because the pace and scale of migration has placed immense pressure on local communities.
"Last week, I announced reforms to our migration system to ensure that those who come here must contribute and put in more than they take out."
Shadow home secretary Chris Philp said the fall in net migration had been driven by Conservative reforms, adding "we need to go much further".