The government has vowed to crack down on poor-quality supported housing, by introducing a national licensing scheme, new standards and tighter controls on housing benefit.

Following a consultation into the Supported Housing (Regulatory Oversight) Act 2023, it plans to target a growing minority of rogue landlords who are taking advantage of a lack of regulation in the sector.

Supported accommodation is typically for tenants who need extra help, such as young people leaving care, those experiencing homelessness and survivors of domestic abuse. MPs and housing groups have raised concerns that it can involve high rents, poor-quality housing and inadequate support for vulnerable residents.

The government will introduce a locally led licensing regime across England whereby providers would need to pass a fit and proper person test and have to comply with National Supported Housing Standards.

Strategies

The Act requires councils to develop local strategies, ensuring that supported housing provision is aligned with genuine local need, rather than driven by profit. Only licence holders would be eligible for enhanced housing benefit.

Bob Blackman MP, (pictured left) who introduced the Bill, said that removing the financial incentive that had driven rogue providers into the market would give the system real teeth.

During a Commons debate, the MP said when the current system failed and rogue landlords took control, tenants could be punished for getting a job, because the reduction in housing support meant that, in most cases, they were kicked out.

“They [rogue landlords] have entered the market not to deliver support, but to maximise profit,” said Blackman. “That is because exempt accommodation allows providers to charge higher rents through housing benefit, recognising that supporting vulnerable people comes with additional costs.”

Resources

However, he added that local authorities must have the resources to implement licensing and enforcement, if the system was to succeed.

Housing minister Alison McGovern promised: “We are going to crack on with it.” She added: “We need to ensure that the framework we put in place is workable, proportionate and fair.

"This is not the end of that support. Further funding will follow to help authorities move to the next stage, including the set-up of licensing schemes.”

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