Proposed licensing reforms would likely reduce provision of supported housing further, warns NHF

The government’s proposals to license and regulate supported housing providers would likely lead to some housing associations reducing their provision unless the plans are adjusted, the National Housing Federation (NHF) has warned.

The NHF said the government’s proposals in their current form “risk unintended consequences by placing an unsustainable financial burden” on good quality providers of supported housing.

The government is proposing, using powers in the Supported Housing (Regulatory Oversight) Act, to introduce new national supported housing standards in England along with a licensing scheme. This is intended to “drive out rogue providers”.

But the NHF, while in favour of improving standards, believes the government’s “blanket approach” risks making worse the current supported housing “crisis”, under which one in three providers closed schemes in the past year.

The Ministry of Housing, Communities and Local Government consultation sought views on the government’s implementation of the measures to inform the drafting of regulations and accompanying guidance.  The NHF in its consultation response set out a series of what it termed “pragmatic adjustments” to the proposed licensing scheme.

NHF is calling for a national framework to ensure consistency and reduce the burden on providers who may otherwise have to follow different procedures in different council areas.

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It called for a ‘risk-based approach’ with an understanding that rogue providers are attracted to higher rents, therefore older person’s housing, which tends to have lower rent, should be exempt. It said licensing must be targeted in the non-commissioned, lease-based part of the supported housing sector to ensure staff time is freed up for frontline service delivery.

NHF is also concerned about the duplication of regulation, as the Regulator of Social Housing, Ofsted and the Care Quality Commission already regulate aspects of the sector. It said a ‘passporting system’ should be implemented through areas where providers are already required to report.

It said: “Information-sharing between local authorities and existing regulators will increase the efficiency of enforcement.”

NHF also called for flexibility over who the licensees should be and for a revamped definition of a licensing scheme. It is also calling for national setting of license fees. It said there should not be a new planning use class for supported housing as the planning system “already creates delays” and said further defining care, support and supervision for housing benefit purposes is not needed.

The NHF also called on the government to review supported housing funding to ensure its part of the long-term housing strategy and NHS 10-year plan, it wants £1.6bn per year allocated to councils to commission supported housing, effectively reversing cuts in 2010.

It is also calling for the government to set a target for affordable housing and an increased 20% rent flexibility level for supported housing. The NHF co-ordinated a letter last month, signed by the leaders of 170 organisations, to Angela Rayner and Rachel Reeves warning of futher closures to supported housing schemes unless government tackles the funding crisis.

Alistair Smyth, director of policy and research at the NHF National Housing Federation, says: “A longer-term and ambitious strategy along with a commitment to funding is needed to give both supported housing providers and residents confidence in the future of this vital service. Without that and without pragmatic adjustments to avoid the unintended consequences of these proposals, there is a real risk of a further reduction in the provision of supported housing.”

A second consultation on the drafting of licensing regulations and changes to housing benefit rules, is expected later this year.