A report from the cross-party Levelling Up, Housing and Communities (LUHC) Committee calls on the UK Government to bring forward a series of urgent reforms for the sector, including the introduction of enforceable national standards and compulsory registration, to help boost the quality of exempt accommodation and support services.

The report also calls for action to close the loopholes in the current system which “offers a licence to print money to those who wish to exploit it”.

Exempt accommodation is a type of supported housing that is used to house a range of people with support needs, such as homeless people, people who have experienced domestic abuse, prison leavers, and those recovering from alcohol and drug addiction.

The Committee’s report recommends that the government:

• Introduce compulsory national minimum standards for exempt accommodation, including on referrals, care & support, and quality of housing
• Give local councils the powers and resources to enforce these standards
• Require all exempt accommodation providers to be registered
• Create a National Oversight Committee to join-up existing regulators and mend the current ‘patchwork regulation’ which has too many holes
• Ensure the providers of exempt accommodation for survivors of domestic abuse have recognised expertise to provide specialist support and a safe environment
• Review the system of exempt housing benefit claims and clamp down on the exploitation of the lease-based exempt accommodation model for profit

Clive Betts, chair of the Levelling Up, Housing and Communities Committee, said: “While there are many good providers of exempt accommodation, the findings of our inquiry on the state of exempt accommodation are shocking. The current system of exempt accommodation is a complete mess which lets down residents and local communities and which rips off the taxpayer. The government must act now to help councils to tackle this situation and ensure people get the quality housing and support services they need to move on with their lives.

“The best examples of exempt accommodation highlight quality housing and specialist services, with proactive staff helping to support residents. However, in the worst cases support amounts to little more than a loaf of bread left on the table or a support worker shouting at the bottom of the stairs to check on residents.

“Residents and communities are being failed while unscrupulous providers make excessive profits by capitalising on loopholes in the system. Recently it has been reported in the media that these providers have included organised criminal gangs, who use the system to launder money. This gold rush is all paid for by taxpayers through housing benefit. This must change and it is crucial the government brings forward reform on a range of areas including on standards, regulation and oversight, and on funding to put this right. In our changes we are not asking for any additional expenditure; we are calling on the government to get a grip on the vast sums it is paying out without effective oversight.”

Crisis has been calling on the government to step in and tackle the issue of rogue landlords within the exempt accommodation sector which the charity says are ruining people’s lives and preventing them from moving on from homelessness. It is urging the government to back the Supporting Housing (Regulatory Oversight) Bill which will be introduced in parliament In November. The Bill will introduce tighter regulation on exempt accommodation providers and protect people from exploitation and abuse.

Responding to the report, Matt Downie, Crisis chief executive, said: “This committee report lays bare the serious failings in the exempt accommodation sector that have allowed people to be exposed to some of the worst examples of exploitation and abuse that we have seen. From being forced to live in damp, mould-infested rooms to being harassed, held at knifepoint by landlords, and in the worst incidents sexually assaulted, our clients have bravely spoken out time and time again about the need for immediate action.

“Now, with this report adding further weight to their calls we would urge the government to get on with implementing these recommendations through the Supporting Housing Bill, which would give councils the power to stop rogue landlords providing exempt accommodation. There can be no delay – it’s essential we close the loopholes that are enabling people to profit from hardship and ensure that people are given the help, support and space they need to leave homelessness behind.”