The contract for an asylum hotel in Epping will be terminated following months of controversy.
The Bell Hotel in Essex will no longer be used to house asylum seekers after the Government ended its agreement with the site, Epping Forest District Council (EFDC) confirmed.
The decision follows protests and community unrest after a resident, Hadush Kebatu, sexually assaulted a 14-year-old girl last year.
Epping Forest District Council said in a statement: "The Home Office has finally, this morning, confirmed to Epping Forest District Council that it is terminating its contract with the Bell Hotel, Epping, as asylum accommodation.
"It will cease being used by July 11 2026 and all service users have been notified of the closure and relocated to other parts of its asylum estate."
The council said: "The news came as a complete surprise, but a welcome one, as it brings an important opportunity to concentrate on rebuilding our community that has been so severely impacted and divided by the damaging events of the past year."
The statement continued: "Epping has traditionally been a community built on trust, inclusivity, and mutual support with a strong sense of belonging, something recent events have tested to the limits."
The Bell Hotel became a focal point of public anger and protests following Kebatu's conviction.
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Kebatu was found guilty of five offences, including sexual assault, and sentenced to prison.
He was mistakenly released from HMP Chelmsford in October before being detained and deported to Ethiopia.
The resulting search for him cost police over £150,000.
Councillor Chris Whitbread, leader of EFDC, said: "It is extremely disappointing the Home Office has failed to communicate with us in a timely manner on such an important issue that has had such a major impact on our town.
"It shows how little regard the Home Office has for our town, our community, and the people of Epping, who have suffered immeasurably over the course of the last year because of the Home Office’s use of the Bell Hotel to accommodate asylum seekers."
Mr Whitbread said he hoped the decision would help the community to begin moving forward.
He said: "I am hopeful that our community, and particularly those residents living in the immediate vicinity of the Bell Hotel, can now be afforded some peace.
"We hope the Home Office will work with the hotel owner to restore the street scene around the Bell Hotel and we would welcome a conversation with Somani Hotels about its plans for the future of the site."
A Home Office spokesman said: "The Government is removing the incentives drawing illegal migrants to Britain.
"That is why we will close every single asylum hotel, moving illegal migrants into basic accommodation like military barracks.
"We are working closely with local authorities, property partners and across government so that we can accelerate delivery."
The council has been challenging the Home Office over the use of the hotel for asylum accommodation for some time.
In March, EFDC lost its Court of Appeal bid to challenge a High Court ruling that dismissed its attempt to block the use of the Bell Hotel for asylum seekers.
The council had sought to appeal Mr Justice Mould’s November decision not to grant an injunction against the hotel’s owner, Somani Hotels.
EFDC is not alone in raising concerns about the Home Office approach.
Last month, Wealden District Council said it was "dismayed" to learn through court documents that Crowborough Training Camp in East Sussex could remain in use until 2030, criticising ministers for a "failure to communicate openly."
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