Currently, the housing and support provided in most supported housing schemes is not directly regulated. Even where personal care is delivered, the Care Quality Commission (CQC) regulates the care service but not the building itself. Although the Charity Commission and the Regulator of Social Housing (RSH) may oversee some providers generally, they do not carry out inspections of individual schemes.
The Supported Housing (Regulatory Oversight) Act 2023 aims to change this by creating a new regulatory regime for all types of ‘supported exempt accommodation’. In early 2025, Government consulted on how the proposed regime should operate, with its response recently published.
Key points
The new regime will have two key parts – the introduction of National Supported Housing Standards (NSHS) and the creation of a licensing regime. The NSHS aim to ensure that supported housing meets people’s needs and helps them achieve their goals. The six proposed standards will be underpinned by five principles – person-centred, respectful, safe and responsive, effective and well-led.
NSHS compliance will be a requirement of the licensing regime, unless the care and support provision is regulated by CQC, or otherwise considered a ‘commissioned service’ – defined in the response as a service where there is already oversight, for example by the local authority.
The response is clear, however, that commissioners should require services to comply with the NSHS through their commissioning arrangements. Where the support service is not commissioned, the licence holder will be responsible for ensuring the NSHS are met.
The licensing regime for supported housing will be operated by local housing authorities. Each authority will have its own system based on a national framework and guidance, meaning there should be broad consistency across all areas. The proposed regime will cover all supported housing, where residents are eligible to claim housing benefit.
The consultation response confirmed, however, that in response to feedback, the list of previously proposed exemptions would be expanded to include (amongst others):
- Supported housing containing at least one Ofsted-regulated bed, for residents aged up to 25 years old.
- Commissioned domestic abuse services.
- Older people’s age-specific, over-55s supported housing, where the supported housing is RSH regulated and the extra care is CQC regulated.
Those managing exempted properties will need to tell the licensing authority of their exemption, and the authority will confirm whether it agrees or disagrees.
Licences will need to be applied for by the person managing or in control of the supported housing. Applications can cover all applicable schemes in the area and the licence will list the addresses from which the licence holder can operate.
Organisations will need to nominate an individual to act as the licence holder and they, as well as those in the board of directors or partnership, will need to pass a fit and proper person test – akin to that used by CQC and Ofsted. It appears that there will be an enhanced fit and proper person test for those who house particularly vulnerable individuals – although no definition of ‘particularly vulnerable’ is provided.
In England, it is proposed that residents will only be entitled to claim housing benefit if their accommodation has a valid licence. Securing a licence will therefore be essential to the financial viability of schemes.
Core licence conditions will apply to all licences across the country – these will include requirements that:
- Housing meets the existing accommodation requirements and standards relevant to the housing tenure. If enforcement action is already being taken in respect of a category 1 Housing Health and Safety Rating System (HHSRS) hazard, the response states the licence should be refused.
- Housing should be at a minimum – safe, accessible for the residents and well maintained.
- Where care is provided, the care provider must be CQC registered.
- A needs assessment is completed when the resident moves in, or if that is not possible, within four weeks. The assessment must comply with the NSHS and be completed by a suitably skilled and experienced person, for example by the licence holder or a commissioning body.
- Licence holders assure themselves that their service managers have the character, capacity, appropriate experience and skills to undertake the role. The licence holder must confirm this on their licensing application and may face enforcement action if not.
It was proposed that licensing authorities would be able to inspect supported housing schemes at any stage of the application process or during the licence period. Government’s consultation response confirms this approach, whilst also providing authorities with discretion not to carry out inspections before granting a licence or during its term. This enables them to determine when and how inspections are most appropriately undertaken.
Authorities will be expected to work with licence holders to allow them to maintain their licence, unless there are serious concerns. Proposed enforcement powers include the power to conduct inspections/investigations, provide information and advice to secure compliance, issue improvement notices and financial penalties, and bring prosecutions.
Considering the feedback, the response confirmed:
- There would be no changes in respect of the planning requirements for supported housing.
- A definition of ‘care, support and supervision’ will not be inserted in housing benefit regulations.
These points may be re-visited when the effects of the new regime are reviewed. The response sets out several risks identified for individuals claiming housing benefit under the new regime if licences are not granted and their eligibility for housing benefit ceases.
It also states the mitigations that will be in place. For example, the risk to an individual of eviction if a licence is not granted will be mitigated by a risk-based approach to licensing, the local authority playing a key role in ensuring residents are re-housed and the introduction of supported housing strategies to ensure sufficient supply for the demand.
Impact of the new regime
The Act and the new regime are driven by concerns that a ‘minority of rogue landlords’ are exploiting the system, claiming enhanced housing benefit payments whilst not providing individuals with the support they require.
Most providers of supported housing should not need to make fundamental changes to comply with the new regime. For example, regulated providers of social housing are expected to comply with the Decent Homes Standard (and therefore provide homes free from category 1 hazards) anyway.
Where the housing and care and support are delivered by separate providers, the regime will prompt a shift in how those providers work together. The licence holder is likely to be the housing provider and its ability to successfully apply for and hold a licence will depend on care and support providers’ activities.
Where there is more than one party who could be the licence holder, the parties are expected to agree between them who is the correct person, based on guidance and case law. If in doubt, they would need to speak to the licensing authority.
It is likely tenders and agreements will need to be reviewed to support compliance with the new regime. If one party wants to exit the provision, this will need to be handled carefully to ensure licensing requirements are maintained and the continuity of the service is not jeopardised.
What comes next?
The Ministry of Housing, Communities and Local Government (MHCLG) is expected to consult on regulations relating to the new regime in late 2026, and following that, regulations will be enacted to bring them into force.
There will be a transition period. It is proposed that any regulations will specify a date that existing schemes will need to be licensed by. After that point, if a licence has not been applied for or has been refused, authorities will be able to penalise a provider for operating without a licence (or a pending application). There will also be implications in respect of housing benefit which we have discussed in this feature.
If a scheme currently has a house in multiple occupation (HMO) licence, or selective licence, the consultation suggests this will remain in force until it expires, and at that point a supported housing licence will be required. Throughout this period however, the provider would still need to comply with the NSHS and notify the local authority about the status of the scheme.
Where NSHS compliance is necessary, providers should review the proposed NSHS now to check whether they currently comply with them. If not, they should consider the actions that would be required to achieve compliance and evidence this, bearing in mind that the proposed NSHS may change further.
Where a landlord and care and support provider are working together on a scheme, they should look at management and service level agreements now to identify any possible changes that may be needed and agree who the licence holder will be.
A raft of other changes are impacting the housing sector in England, including the phased implementation of the Renters’ Rights Act 2025 and phase two of Awaab’s law for registered providers. Coupled with this, CQC is implementing its improvement plans. It is essential for providers to understand which legislative and regulatory changes apply to them and plan for these accordingly.
How is your provision preparing for a new regulatory regime in supported housing? Comment on this feature or join the conversation to share your thoughts.
Emma Hardman is a Partner at Anthony Collins. Email: [email protected] Linkedin: @Anthony-Collins
Lorna Kenyon-Pain is a Senior Associate at Anthony Collins. Email: [email protected] LinkedIn: @Anthony-Collins