Supported Housing Regulation: Key Considerations for Providers

The Government’s response to the supported housing regulation consultation provides greater clarity on the proposed licensing regime, the revised National Supported Housing Standards and the intended link to Housing Benefit. However, a number of points still depend on regulations and guidance, so providers should read the response as a clearer indication of direction rather than a fully settled framework.

At a glance

• Identify which schemes are likely to require a licence and the local authority areas in which they operate.
• Determine which entity is best placed to hold the licence under each operating model.
• Review governance, property compliance and service management arrangements against the proposed conditions.
• Assess whether any exemption may apply and what evidence will be needed to support that position.
• Treat licensing readiness as both an operational and funding priority.

Set out below are the main practical implications for providers and the areas they may wish to consider now as further detail emerges.

In practice: Many providers should proceed on the basis that the new regime is likely to apply unless a clear exemption is available, but the final position will depend on the detail of the regulations.

Licensing application process

A useful starting point will be to identify who will apply, which schemes fall within each licensing district, and what information and supporting evidence is likely to be required for each application.

In practice: Doing this mapping exercise early should make the application process much easier to manage later on.

The response indicates that some changes may be capable of being dealt with through a variation rather than a full re-application, although the detail will need to be confirmed in regulations and guidance.

Applicants will need to satisfy the fit and proper person test, describe the services covered by the licence, and identify the service manager for each scheme.

Local authorities will assess applications, may inspect schemes, and can request further information before deciding whether to grant a licence.

Exemptions

Providers may wish to consider at an early stage whether any exemption may apply, while also planning for notification requirements and the possibility of challenge by the relevant local authority.

In practice: Even where an exemption may apply, it will still help to have the evidence ready and to engage with the local authority early.

The response indicates that exemptions are likely to include certain forms of Ministry of Justice accommodation, schemes with Ofsted-regulated provision for younger residents, some accommodation managed or commissioned locally, commissioned domestic abuse services, some housing for older people already subject to social housing regulation, and almshouses.

Where a provider intends to rely on an exemption, it is likely to be important to notify the relevant local authority. The response also suggests there will need to be a route to challenge decisions on exemption status, although the mechanism will need to be confirmed.

Further guidance is expected, to clarify how the exemption categories will work in practice.

The licence holder

For providers operating across landlord, managing agent and support models, one of the first practical questions will be who is best placed to hold the licence and on what basis.

In practice: If delivery is split across different organisations, it is worth settling licence-holder responsibility early so this does not become a point of delay later.

The current expectation is that organisations should agree this between themselves and seek input from the licensing authority where responsibility is unclear.

Although further examples are expected in the final guidance, the response does not appear to settle all cases in advance, so providers should be cautious about assuming any one entity will automatically be the licence holder.

The response suggests that some commissioned services may fall outside the regime on the basis that they are already subject to public oversight, but the exact scope of any exemption will need to be confirmed in the final framework.

The fit and proper persons test

Providers may also wish to identify at an early stage who will need to satisfy the fit and proper person test, and whether leadership, governance and accountability arrangements are sufficiently robust.

In practice: This will be about people and governance as much as it is about compliance. The fit and proper person test is intended to focus on integrity, competence and suitability, although the detailed criteria and how closely they resemble other regulatory regimes will need to be confirmed.

Licensing conditions

The proposed licence conditions can usefully be treated as a readiness checklist across property standards, operational delivery and day-to-day management.

In practice: It will be important to look at how services actually operate day to day, not just what policies say on paper.

Accommodation standards: Providers will need to ensure properties are safe, in good condition and compliant with relevant housing standards; serious hazards could prevent a licence from being granted.

Use of accommodation: Accommodation will need to be suitable for residents’ needs and properly maintained, with accessibility and safety clearly in view.

Care, support and supervision: Where registration is required, providers will need to ensure this is in place, and services outside registration requirements will still need to meet the applicable standards unless exempt.

Needs assessments: Providers should expect to have a process for assessing residents’ needs at the start of a placement or shortly afterwards, carried out by someone with appropriate skills and experience.

Service manager suitability: Licence holders are accountable and will need to be confident that those running schemes on a day-to-day basis have the right character, capacity, skills and experience.

National Supported Housing Standards

Providers should not treat licensing as the whole picture: organisations will also need to show how responsibility is allocated and evidenced against the National Supported Housing Standards.

In practice: Where housing and support sit in different organisations, it will help to be clear now about who is responsible for what.

The standards have been revised in a way that should work better where housing and support are delivered by different organisations.

In broad terms, the response suggests that housing-related requirements are expected to sit mainly within the licensing regime, while support providers will need to evidence compliance with the standards relevant to their role.

The main practical changes are summarised below.

Person-centred standard: There is a stronger emphasis on advocacy, consistency of support and more developed move-on planning.

Environment standard: Providers should ensure emergency placements are managed appropriately and that residents have a clear route for reporting both routine and urgent repairs.

Staff and safeguarding standard: Safeguarding now stands out more clearly as a distinct requirement, supported by training expectations and a stronger performance management focus.

Local need standard: There is no proposed local connection test, but providers may still need to explain out-of-area placements and show alignment with local strategies once available.

Responsible person standard: This has been removed, with service manager suitability instead dealt with through the licensing framework.

Statement of purpose standard: This has been simplified, and providers will no longer need to set out scheme locations within the statement itself.

Linking Housing Benefit to the licensing regime

Providers should plan on the basis that the proposed link to Housing Benefit will make licensing readiness financially significant.

In practice: Providers should treat licensing readiness as part of financial planning as well as compliance planning.

For providers and commissioners alike, a key concern will be the impact on residents where a licence is not obtained or is later lost.

The Government’s proposed mitigations include a risk-based local authority approach, time for providers to remedy issues, support for residents who need to be rehoused, and further guidance on how Housing Benefit should be administered in these cases.

Areas Deferred for Further Development

Providers should keep these issues under review, as two significant points have been deferred rather than resolved and may be revisited once the new regime has had time to bed in.

New planning use class for supported housing

For now, the Government has decided not to introduce a new planning use class for supported housing, citing concerns that this could restrict development. The response indicates that this position may be revisited in future once the wider regime is in place and its effects are better understood.

Definition of care, support and supervision in the Housing Benefit Regulations

The Government has also deferred introducing a formal definition of ‘care, support and supervision’ in the Housing Benefit Regulations.

That reflects the lack of consensus in consultation responses, particularly given the breadth of supported housing models and resident needs.

In practical terms, this means the issue remains open for now and may be revisited once the new regime is operating and there is more evidence of how it works in practice.

Get in touch

If you would like to discuss how these developments may affect your organisation, or would like support in assessing your readiness, please contact Anna Cooley, Principal Consultant.