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Government unveils £20m fund to help councils tackle rogue landlords in supported housing sector

The Department for Levelling up, Housing and Communities has unveiled a £20m fund that will allow councils “to crack down on landlords who profit through benefit claims but fail to support their vulnerable residents” in the supported housing sector.

It said that landlords could be banned from operating or fined up to £30,000.

Supported housing provides accommodation alongside care, support, or supervision for residents who may have experience of homelessness, mental health issues or domestic abuse.

The Department said that funding would enable councils to “step up inspection of accommodation standards” and provide “enhanced scrutiny of Housing Benefit claims” to ensure they are reasonable.

“It will also improve local enforcement of the quality of accommodation and support to residents including supervision, advice, or help with life skills, to help tenants live independently in the community”, the report said.

Michael Gove, Secretary of State for Housing, Communities and Local Government, said: “Time’s up for rogue landlords who take money from the taxpayer while exploiting vulnerable people.

“We are stepping in to help councils crack down on this appalling activity and I will be working closely with Bob Blackman MP on his Private Members’ Bill to deliver tough new laws to end this practice once and for all.”

Blackman’s Private Members Bill, which seeks to address poor-quality supported housing, will receive its second reading on 18 November.

DLUHC said the Supported Housing Improvement Programme funds follow “successful pilots” in Birmingham, Blackburn, Darwen, Blackpool and Hull councils which helped them carry out more than 1,000 property inspections of supported housing backed by more than £5m.  

Additionally, a further £6m of funding was awarded to these councils through the Supported Housing Programme in August 2022, to help them continue to build on their work.

The Levelling Up, Housing and Communities Committee recently described the current system of exempt accommodation, a type of supported housing used to house a range of people with support needs, as a ‘complete mess’ and said it was failing too many residents and local communities at the expense of the taxpayer.

In a report the committee said that it was clear from its inquiry that some residents' experiences of exempt accommodation were 'beyond disgraceful', pointing to a breakdown of the system.

Lottie Winson