Gaps in data and regulation are allowing increasing numbers of landlords to profit by providing costly, sub-standard housing with little or no support, supervision or care, according to a new National Audit Office report.
Supported housing is accommodation provided alongside support, supervision or care to help people with specific needs to live as independently as possible in the community. This includes, for example, those who are elderly; living with disabilities; or have experienced homelessness or substance misuse.
There are three categories of supported housing; short-term (e.g. hostels); specialised (e.g. long-term housing for people needing a high level of care), and sheltered housing (long-term housing for older people with minimal or extra care needs).
Current gaps in regulation means some supported housing providers are receiving less scrutiny. And there is no direct regulation of the quality of support offered.
A Government review in 2016 estimated there were 651,000 supported homes (a room or bedspace in shared supported housing or a self-contained home) in Great Britain (85% of which are in England). The review estimated the Government spent around £3.5 billion in England per year on the accommodation element of supported housing through Housing Benefit.
Responsibilities for supported housing are spread across central government. The Department for Levelling Up, Housing and Communities (DLUHC) is responsible for the supply and quality of supported housing.
The Department for Work & Pensions (DWP) reimburses local authorities for paying Housing Benefit claims and sets Housing Benefit policy. The Department of Health & Social Care (DHSC) develops policies that aim to give more people the choice to live independently and healthily in their own homes for longer.
Other government organisations also have a role with certain groups of people, for example, the Department for Education for young people leaving the care system. Local authorities are responsible for managing Housing Benefit claims and inspecting supported housing.
Disgraceful experiences
There has been considerable criticism of some supported housing, in particular, short-term supported housing. Some types of supported housing are exempt from locally set caps on Housing Benefit which means providers can charge high rents. This type of exempt accommodation was the subject of an inquiry in 2022 by the Committee for Levelling up, Housing & Communities (the Committee).
The Committee concluded that some residents’ experiences of exempt accommodation were ‘beyond disgraceful’. The Committee also noted the lack of regulation and governance of providers, and ‘the exploitation of the system by people seeking to make profit from it.)
One local authority reported to the Committee for Levelling Up, Housing and Communities that in the 345 supported housing units it inspected between April 2019 and January 2022, it found 323 hazards classed as a serious and immediate risk to a person’s health and safety. A lack of national, central government data on exempt accommodation makes it difficult to assess the scale of the problem.
DLUHC is aware of the limits of available data and has commissioned research to provide an up-to-date understanding of the supported housing sector. In 2022, DLUHC allocated £20 million over three years to 26 local authorities to help them improve the quality and value for money of supported housing, together with enhancing local authorities’ knowledge of local supply and demand.
A new private members’ Bill aimed at improving supported housing is due to come into force by this summer with Government backing. The Bill, introduced by Bob Blackman MP, will develop national standards, require local authorities to review supported housing in their areas, and enable them to create licensing schemes for exempt accommodation. DLUHC has yet to establish how it will support local authorities to implement these new duties, although it has committed to a full consultation.
Gareth Davies, head of the NAO, said: “Better data and regulation can be driving forces behind much-needed improvements in supported housing. Assisting local authorities to ably scrutinise landlords can help raise housing standards for some of the most vulnerable people in our society, who deserve far better.”