Eddie Hughes, parliamentary under secretary of state at the Department for Levelling Up, Housing and Communities, said the move aims to prevent a minority of landlords from charging high rents for poor quality accommodation and little or no support.

In a ministerial statement, Mr Hughes added: “I wish to inform the House of the government’s intention to bring forward measures to put an end to unscrupulous landlords exploiting some of the most vulnerable in our society.

We have no intention of penalising those providers who operate responsibly. We are clear that measures must be as targeted and proportionate as possible to protect supply of housing across the board.”

The package of measures will include:

• Minimum standards for the support provided to residents to ensure residents receive the good quality support they expect and deserve in order to live as independently as possible and achieve their personal goals;
• New powers for local authorities in England to better manage their local supported housing market and ensure that rogue landlords cannot exploit the system to the detriment of vulnerable residents and at the expense of taxpayers; and
• Changes to Housing Benefit regulations to seek to define care, support and supervision to improve quality and value for money across all specified supported housing provision.

The government will introduce any measures requiring legislation when parliamentary time allows.

Eddie Hughes MP said: “We will work closely with local government, sector representatives, providers and people with experience of supported housing as we develop these measures to ensure they are fit for purpose, deliverable and minimise unintended consequences for the providers of much needed, good quality supported housing.

“Alongside these proposed measures, today I am announcing that we will provide £20 million for a Supported Housing Improvement Programme. Funding for this three-year programme will be open to bids from all local authorities and build on the clear successes of the supported housing pilots. The pilot authorities were able to drive up the quality of accommodation and support to residents. They also improved value for money through enhanced scrutiny of Housing Benefit claims to verify that costs were legitimate and reasonable.

“The Supported Housing Improvement Programme will be vital to drive up quality in the sector in some of the worst affected areas immediately, while the Government develops and implements longer term regulatory changes. The bidding prospectus for the programme will be published in due course.

“This package of proposed measures will tackle poor quality and poor value for money in supported housing and improve outcomes for individuals, while preserving good quality provision run by responsible providers.”

Matt Downie, chief executive of Crisis, responded: “We’re pleased government has indicated its intention to tackle the significant social injustice happening in parts of the exempt housing sector that leaves vulnerable people living in squalor. Today’s statement sets the wheels in motion for much needed reform. We’re looking forward to working closely with DLUHC on these changes and putting an end to unscrupulous practice where it exists.” 

Cllr James Jamieson, Local Government Association chairman, said: “We are pleased that government is acting on councils’ concerns about the minority of unscrupulous landlords who exploit the supported housing system for financial gain while providing poor quality accommodation and support to people in vulnerable circumstances. 

“This has a significant and detrimental impact on the lives of the people who live in poor-quality housing without the right level of support, and the wider community, as well as a cost to the public purse.

“We look forward to working with government, supported housing providers, people with lived experience of supported housing and other partners to take forward the important measures announced today and ensure this moves along at pace.”

Cllr Sam Chapman-Allen, chair of the District Councils’ Network, added: “The District Councils’ Network enthusiastically welcomes these new measures. They are much needed after a period of rapid growth in unregulated supported housing. This has blighted the lives of some of our most vulnerable residents. It has also come at a big cost to the public purse. Last year we estimated that the cost of non-regulated providers to district councils was at least £70m per year.

“We’ve long been calling for stronger regulation of unscrupulous landlords and wider intervention and funding to drive up standards in the supported housing sector. We’re pleased that the government has listened on all counts. 

“We look forward to working with the government to implement these measures successfully and to ensure the system is fixed for good. District councils across the country stand ready to help.”