The Bibby Stockholm barge is set to be dismantled and moved out of Dorset after the final asylum seeker left the barge this week.
The controversial accommodation was opened by the Conservatives and brought protests, arrests and condemnation from campaign groups.
Last year Leonard Farruku, a musician who was seeking asylum after travelling from Albania, is thought to have killed himself after being housed in the temporary accommodation.
The news was welcomed by Lloyd Hatton, the local Labour MP for South Dorset, who called the use of the barge “an expensive and unworkable gimmick”.
He said: “I welcome the news that the Home Office has processed all of the asylum cases on the Bibby Stockholm barge. They promised to empty the barge by the end of November, and they have made good on that promise.
“From the get-go, our entire community knew that this barge was an expensive and unworkable gimmick. The previous Conservative government landed us with this wasteful barge, by closing it down we are saving the taxpayer a small fortune.
“Working closely with the new government, I have been able to help shut down the barge for good.”
A Home Office team has been processing claims from the 400 men housed on the boat.
A significant majority are understood to have been granted asylum and most are expected to leave the area for accommodation elsewhere.
The local council has said that none of the men moved from the vessel will be based in other accommodation in Dorset, with reports saying they are likely to be moved to other areas including Cardiff and Wolverhampton.
The barge will be handed back to its owners, Bibby Marine, on 8 January when it will sail from the port as its contract formally expires.