The government’s response to its Supported Housing regulation consultation
Following the Housing LIN and HCR Law jointly published briefing summarising the guidance accompanying the Supported Housing (Regulatory Oversight) Act 2023, the government published its formal response to the supported housing regulation consultation, setting out its confirmed proposals for the implementation of the licensing regime, the National Supported Housing Standards, and Housing Benefit changes.
We have reviewed the government's consultation response alongside our briefing and are pleased to confirm that the briefing remains a helpful and accurate overview of the new regulatory framework for supported housing providers and local authority commissioners. However, the government's response does contain a number of important developments and clarifications which readers should be aware of, and which we summarise below. We will be updating the briefing in due course to reflect these points.
Key Points from the Government's Consultation Response
Exemptions from Licensing
The government has confirmed an expanded list of exemptions from the licensing regime. This is of particular relevance to providers and commissioners working in older people's housing and extra care. The following categories of supported housing will be exempt from licensing:
- supported housing commissioned by the Ministry of Justice, including the CAS2 scheme;
- supported housing containing at least one Ofsted-regulated bed, for residents aged up to 25;
- accommodation managed or controlled by a local authority where support is commissioned directly by the local authority or a public body;
- domestic abuse services commissioned under Part 4 of the Domestic Abuse Act 2021;
- older people's age-restricted housing for over-55s, including Extra Care schemes, regulated by the Regulator of Social Housing;
- almshouses as defined in paragraph 12 of Schedule 1 to the Housing Act 1985.
Providers operating exempt provision will need to inform the local authority of their exemption, with a right of appeal if the local authority disagrees.
Revised Licensing Application Process
The government has moved away from a per-property application model, which respondents said would be unduly burdensome, particularly for dispersed schemes. Instead, a licence must be obtained by the person managing or in control of supported housing properties in each licensing district. The licence will list the specific addresses where the holder is authorised to operate, allowing providers with multiple properties in a district to apply in a single application.
The Licence Holder and Commissioned Services
Where multiple organisations are involved in delivering supported housing, the person "managing or in control" should hold the licence. In many cases this will be the managing agent. Importantly, commissioned services ( where the local authority or a public body contracts the support service ) will not be required to comply with the National Supported Housing Standards licensing condition, although commissioners will be expected to commission support to comply with those standards.
Expanded Fit and Proper Person Test
The fit and proper person test has been significantly expanded and aligned with CQC and Ofsted tests, rather than HMO licensing as originally proposed. The test now extends to the Board of Directors where the licence holder is an organisation, and requires assessment of integrity, good character, and relevant skills and experience.
New Service Manager Licensing Condition
A new licensing condition requires licence holders to assure themselves that their Service Managers — those responsible for the day-to-day running of supported housing — have the character, capacity, experience, and skills for the role. The government has emphasised that lived experience should not be a bar to becoming a service manager.
No Discretionary Licensing Conditions
To ensure consistency, regulations will not include the power for licensing authorities to add their own discretionary conditions.
Changes to the National Supported Housing Standards
A number of amendments have been made to the standards following consultation feedback. The Responsible Person Standard has been removed entirely. The Person-Centred Standard now includes the role of advocates and requires "consistent support" rather than the same support worker. The Local Need Standard has been revised to clarify that it does not include a local connection test, and new providers will only need to evidence compliance once local authority supported housing strategies have been published. The Statement of Purpose Standard no longer requires location details to be published, in order to protect resident safety.
Category 1 Hazards — A More Proportionate Approach
The government has confirmed that the original proposal ( that a licence would not be granted where a Category 1 hazard is identified ) has been revised. Licensing authorities will now have discretion to decide on appropriate action, including allowing improvement plans. A licence application should only be refused where enforcement action is already being taken against a Category 1 hazard.
Housing Benefit Linked to Licensing
The government will amend Housing Benefit regulations to link entitlement to the licensing regime in England. Providers who fail to obtain a licence risk their residents losing Housing Benefit entitlement. This link will not apply in Scotland or Wales. The government has confirmed it will not introduce new definitions or thresholds for care, support, and supervision at this stage.
Planning
The government is not minded to introduce any planning changes for supported housing at this stage but will review this position after three years in line with the Act's requirements.