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Housing associations keeping thousands in unregulated supported housing, says report

Tens of thousands of vulnerable people are living in “unregulated” supported housing provided by housing associations which is potentially unsafe and unsuitable, a report has warned.

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Housing associations keeping thousands in unregulated supported housing, says report #ukhousing

More than 27,500 people across seven cities are thought to be affected, according to a study by Thea Raisbeck, research and best practice lead at Spring Housing Association, and the Housing and Communities Research Group at the University of Birmingham.

The cities included Birmingham, Manchester and Liverpool, with Birmingham having the most of these types of properties.

The homes are provided under “exempt accommodation” rules within housing benefit and Universal Credit regulations, meaning landlords can charge higher rents in exchange for meeting loose requirements to provide “care, support or supervision” to residents.

But the report, commissioned by charity Commonweal Housing, claimed there is little accountability for whether people are getting the right service for their needs, with providers not required to supply evidence about housing conditions.

Registered Providers (RPs) of social housing enter lease agreements with private landlords, either directly or through a third party, and often manage the units using other individuals or organisations to provide care services.


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It is a similar funding model to that used by housing associations entering index-based lease agreements with equity investment firms, which have been subject to intense scrutiny from the Regulator of Social Housing (RSH) in the past year.

However, the ‘exempt’ housing is a different class of supported housing to the specialist supported housing in these cases with less stringent criteria.

Often the accommodation will be short-term tenancies in homes in multiple occupation, but are not subject to local authority licensing as RPs are exempt.

Councils are also “disincentivised” from investigating exempt accommodation as they will usually receive 100% of the rent paid out back from the Department for Work and Pensions.

‘Non-commissioned exempt accommodation’, as it is branded in the report, is not used as temporary accommodation by councils.

Instead, tenants may be referred through a variety of other means, including when leaving prison or different forms of care.

They will often be highly vulnerable, the report said, and may include domestic abuse survivors, refugees leaving asylum accommodation or people previously sleeping rough.

Many enter exempt accommodation at “crisis point” with no alternative housing, while most placements happen on an emergency basis, sometimes on the day of offer.

Researchers found the high rent levels – up to five times the Local Housing Allowance rates – can be a barrier to employment, as they would become unaffordable to someone in low-paid, insecure work with lower benefit entitlements.

The report calls for welfare regulations to be tightened and for the RSH to be given extra powers to proactively monitor consumer standards.

Ashley Horsey, chief executive of Commonweal Housing, said: “Everyone accommodated in this sector is in need of a home. But this necessity should not lead to accepting poverty of standards, poverty of management or poverty of aspirations and opportunities.

“This report is a call for better information, regulation and scrutiny to ensure that ‘exempt’ housing is a legitimate and safe option for everyone who needs it.

“National and local government must heed its recommendations and address the accountability deficit in this sector once and for all.”

Dominic Bradley, chief executive of Spring Housing Association, said: “We firmly believe there is a place and a need for non-commissioned exempt accommodation.

“At its best it acts as a true enabler to a safer and more independent life for our most vulnerable groups.

“However, at its worst it is where ‘hidden’ homelessness manifests itself most sharply; in precarious housing conditions without appropriate services, support or security.

“We hope that this work continues to illustrate the need for more transparency, regulation and accountability, and we will keep working with our partners at local and national level to ensure this sector does not cause harm to those it is intended to help.”