22/09/2026
The Supported Housing (Regulatory Oversight) Act 2023 (the “Act”) received Royal Assent on 29 June 2023. It was introduced to improve standards in the sector and strengthen local authority oversight of the minority of providers exploiting the Housing Benefit system by charging high rents while providing inadequate accommodation or support.
Local Supported Housing Strategies
Section 2 of the Act places a duty on local housing authorities in England to assess the current provision of, and future need for, supported housing in their area and to formulate and publish a Local Supported Housing Strategy.
The Government has issued statutory guidance to accompany the Act which sets out expectations for local authorities in implementing the new system. The Government currently plans for the first strategies to be published by 31 March 2027, with a new strategy to then be published at least every 5 years.
The guidance sets out a framework for the strategies which is built around the following 4 components, and which local authorities are expected to build on in accordance with local need and priorities:
Strategic Priorities
Local authorities should appoint one or more strategic leads to act as the main point of contact and co-ordinate the development, delivery and monitoring of the strategy.
The strategy must cover ‘supported exempt accommodation’ as defined at section 12 of the Act. Local authorities should also include retirement or sheltered housing and can choose to also include other forms of housing with support that meet local need but do not fall within the supported exempt accommodation definition.
The strategies should also link to and align with wider strategic and service planning in both local and national contexts. The guidance sets out a detailed list of these, some of which include:
Local plans
Market position statements
Neighbourhood health plans
Housing and homelessness strategies
Adult social care strategies
Domestic abuse safe accommodation strategies
Partnerships
Social services authorities are under a duty to provide the relevant local housing authority with such assistance as it may reasonably require in connection with its Local Supported Housing Strategy.
Local authorities are expected to work with a range of external partners and internal council stakeholders during the strategic planning process, some of which include:
Public health
Integrated Care Boards
Supported housing providers
Current and prospective residents of supported housing (including families and carers where appropriate)
Housing Benefit
Adult and children’s social care
Finance and legal
Local authorities should also establish governance structures to reflect local circumstances as well as looking to involve current, former and prospective residents when developing and reviewing their strategies.
The guidance also makes it clear that local authorities should have clear and secure data-sharing arrangements with partners to support oversight of the strategy, whilst ensuring these comply with data protection legislation.
Needs assessment
The strategy must include a summary of the authority’s assessment of the net additional supported housing likely to be required during the five-year period beginning on the date of publication. The guidance also recommends considering need over a ten-year period. This is referred to in the guidance as the ‘needs assessment’.
The guidance identifies three consistent service categories for the purposes of reporting to the Ministry of Housing, Communities and Local Government (MHCLG). These are:
Older people’s supported housing, e.g. extra care and retirement or sheltered housing
Long-term supported housing, e.g. supported living
Transitional supported housing
By utilising consistent types when reporting, the aim is to assist with benchmarking across local areas, improving data quality and oversight, and with policy and funding decisions.
The guidance does not stipulate how local authorities should undertake the needs assessment but does recommend the following 4-step approach:
Map the current supply of supported housing
Understand the potential wider housing with care and support population
Identify supported housing need within the potential wider housing with care and support population
Estimate net additional supported housing need
The guidance also encourages cross-authority working to improve efficiency, reduce duplication and help people with complex or specialist needs access suitable housing and support.
Where an authority secures accommodation outside its district in the exercise of relevant homelessness functions, it should also comply with the notification requirements under section 208 of the Housing Act 1996. The guidance indicates that advance notification is best practice where practicable.
Delivery Plan
The strategy should include a delivery plan based on the needs assessment and strategic priorities.
This should include details on current supported housing schemes in development and the processes for managing future development.
In addition, the strategy should identify sources for capital and revenue funding, Housing Benefit eligibility, and land and site availability.
Local authorities should also confirm how referrals into supported housing will be managed, including consideration of a gateway or access-panel approach to referrals and how referral arrangements will interact with the licensing regime (see further below). Any referral system should be accessible to prospective residents, housing providers and other statutory and voluntary local services.
The strategy should also set out how voids will be managed with an aim to minimise unnecessary or prolonged vacancies.
Local authorities are expected to set out within their strategies move-on pathways so that residents who can be transitioned to general needs housing can do so when ready.
The strategy should also include the delivery priorities for the local authority and clear, time-bound delivery actions. The delivery plan should be reviewed at least annually.
MHCLG plans to request annual management information from local authorities on their strategies. The first collection is expected to take place through DELTA from spring 2027. Further reporting instructions are awaited, but the information is expected to cover matters including stock, demand and strategic review.
Supported Housing Regulation
The Act aims to address gaps in the oversight of supported housing and tackle the minority of rogue providers who provide poor quality accommodation or inadequate support while seeking to maximise financial returns. It includes powers to introduce a licensing regime intended to protect people who genuinely need support.
The Government consulted on implementation of the measures in the Act between February and May 2025 and published its response to the consultation on 16 April 2026, which was subsequently updated on 19 June 2026, summarising its proposals for the sector, which are set out below.
Licensing
The following section summarises the Government’s current proposals. The final scope and operation of the regime will depend on regulations and statutory guidance that have not yet been finalised.
Subject to prescribed exemptions, the Government proposes that the licensing regime should apply to supported housing falling within the definition of supported exempt accommodation in section 12 of the Act.
However, certain accommodation types will be exempted from the regime. The Government’s current proposed exemptions include:
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-restricted supported housing for people aged over 55, including Extra Care schemes, where the provider is regulated by the Regulator of Social Housing;
relevant Ministry of Justice provision, including CAS2
accommodation managed or controlled by a local authority where support is commissioned directly by the local authority or public body
almshouses
The Government also intends to clarify in guidance that some accommodation commonly described as supported housing may fall outside the statutory definition and therefore will not require a licence. This may include certain CQC-regulated residential treatment services.
A licence must be obtained by the person managing or in control of the supported housing properties in each licensing district. A single application may cover multiple properties within that district. This is a change from the original proposal, which would have required a separate licence application for each scheme, defined for these purposes as a property address. The licence will list the specific addresses at which the licence holder is authorised to operate supported housing.
The proposed fit and proper person test (FPPT) will apply to the licence holder. Where an organisation manages or controls the supported housing, its board must nominate an individual director as the licence holder. The nominated individual, the organisation’s directors and, where applicable, any partner in a partnership must satisfy the FPPT. The licensing authority will consider whether each relevant person is of integrity and good character and has the skills and experience required to manage or control supported housing.
There will also be an enhanced FPPT for licensees that have ‘particularly vulnerable’ residents, although there is no indication as yet as to the details of the enhanced test or which residents will fall within that category.
The proposed licence conditions include:
Standard of accommodation – properties must meet the existing accommodation requirements and standards applicable to their housing tenure.
Condition and suitability of accommodation – properties should be safe, appropriately maintained and suitable for the needs of the residents accommodated.
Provision of care, support and supervision – where a provider carries on a regulated activity, including the provision of personal care where applicable, it must be appropriately registered with the Care Quality Commission (CQC). Any service provided that is not registered care must comply with the National Supported Housing Standards (see below) unless exempt.
Needs assessment – the licence holder will be required to ensure that a needs assessment is completed for each resident when they move in or within four weeks of moving in. This must comply with the National Supported Housing Standards and be completed by a suitably skilled and experienced person.
Suitability test for service managers – licence holders must satisfy themselves that their ‘service managers’ (those responsible for the day-to-day running of supported housing) have the character, capacity, experience and skills to undertake the role.
Compliance with the new National Supported Housing Standards (below).
National Supported Housing Standards (NSHS)
The Government proposes to introduce enforceable National Supported Housing Standards (NSHS), setting out the quality of support and supervision expected in supported housing. The revised standards are:
Person-centred support: residents must have an individual needs assessment and tailored support or supervision plan, developed with the resident or their advocate wherever possible. Support should be consistent, outcomes-focused and aimed at promoting independence.
Empowerment: residents and their advocates should be involved in developing services, understand the respective roles and responsibilities of those involved, and have access to clear and accessible complaints and redress procedures.
Environment: providers must promote a clean and comfortable living environment, manage referrals and risks appropriately, respect residents’ privacy and relationships, and have processes for reporting routine and emergency repairs.
Staff and safeguarding: schemes must have suitable staffing, appropriate training and DBS checks, effective safeguarding arrangements, performance-management processes, and policies addressing anti-social behaviour and pre-eviction action.
Local need: new provision will be expected to demonstrate engagement with local partners, links with local services, positive community relationships and alignment with need identified in the relevant Local Supported Housing Strategy. This is not a local-connection test for individual residents.
Statement of purpose: providers must set out the service’s aims, intended outcomes, partnerships and approach to community engagement, and review the statement annually.
The NSHS have been revised so that the support provider can demonstrate compliance in full. Housing-related responsibilities will instead apply to the licence holder through separate licensing conditions. The proposed Responsible Person Standard will not proceed because licence holders will be required to identify service managers and satisfy themselves that they are suitable for their roles.
Compliance with the NSHS will generally be a licensing condition. However, commissioned support services will not be subject to that condition because they are already overseen by the commissioning body, although commissioners will be expected to commission services in accordance with the standards. Providers carrying on CQC-regulated activities will remain subject to the applicable CQC requirements.
Detailed guidance on how compliance should be evidenced will be published before the licensing regime is implemented.
Housing Benefit
The Act was introduced to tackle the minority of supported housing providers who exploit the system by charging high levels of rent met through Housing Benefit whilst providing little or no support to residents.
The Government has confirmed that it intends to amend the Housing Benefit Regulations so that, in England, entitlement to Housing Benefit under the specified accommodation rules is linked to the licensing regime. Under the proposals, accommodation operated without a required licence, or following revocation of a licence, would no longer be treated as specified accommodation. The detailed effect, including any transitional arrangements, will depend on the final regulations.
Some concerns over the impact on residents were acknowledged by the Government, but it was accepted that it was important to act to protect those residents who are not provided with the care and support they require.
Next Steps
Many in the sector are likely to welcome the Government’s more targeted approach. Established providers may already comply substantively with several of the proposed standards. However, they are still likely to face new licensing, governance, evidential and administrative requirements.
Following the consultation response, regulations are being drafted by MHCLG and DWP. MHCLG expects to consult on its draft regulations in late 2026, after which regulations will be laid before Parliament to bring the measures into force.
Our Housing team can assist supported housing providers in understanding their obligations and preparing for the new requirements. For further advice, please contact Matthew Watts or Sarah Orchard.
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