The Home Office numbers show initial decisions on asylum claims have increased to 133,502 people receiving an initial decision across the year - almost half of which (45%) were granted.
"Decision making has reached a historically high level and the numbers of cases awaiting an initial decision fell 36% between September 2024 and September 2025, despite a record high number of asylum claims in this period," the release said.
The backlog of those waiting for a first decision has been declining steadily across the year, but there has been a growing backlog of appeals.
The government has committed to end the use of asylum hotels by the end of this parliament.
More than 36,000 people were being temporarily housed in hotels in September, Thursday's figures show.
This is up 13% on the last three months, but due to fluctuation over the last year represents a smaller increase - of 2% - from September 2024.
It is lower than the peak of 56,018 people in hotels at the end of September 2023.
It follows legal battles over the use of hotels with Epping Forest District Council saying earlier this week they would appeal against a High Court decision that rejected its case to close Epping's Bell Hotel to asylum seekers.
Responding to Thursday's statistics, a Home Office spokesperson said there were fewer than 200 hotels in use as they vowed "to close every single one".
"We are furious at the levels of illegal migrants and asylum hotels.
"Work is well under way to move illegal migrants into military bases to ease pressure on communities across the country."