Supported housing shortages costing mental health services £100m a year, report finds

A lack of supported housing is forcing mental health patients to remain in hospital despite being clinically ready for discharge, costing the NHS in England more than £100m a year, according to a report out today.

Research by the National Housing Federation (NHF), supported housing provider Look Ahead and the Royal College of Psychiatrists (RCP), found lack of available supported housing led to more than 121,000 additional hospital bed days in 2024/25 at an estimated cost of £102m.

The report, titled ‘Breaking the cycle: Supported housing as an enabler of mental health hospital discharge and community mental health service delivery’, found a lack of supported housing in local communities is a major driver of delayed discharge, readmission and rising pressure across mental health services in England.

It found that supported housing costs around a third of an inpatient bed and could therefore save the NHS between £53m and £65m a year.

RCP, Look Ahead and National Housing Federation are calling on the UK Government, NHS England, Homes England and the Greater London Authority to commit to long‑term, sustainable funding for supported housing, greater rent flexibility and stronger integration of housing into national and regional mental health policy.

They are also calling for the removal of the “no public assistance clause” for specialised supported housing, capital grant schemes to be adapted to reflect the true costs of developing and running supported housing and integrating housing within neighbourhood health policy.

Chris Hampson, chief executive at Look Ahead, which delivers mental health hospital discharge services across London and the South East, said: “When supported housing is available, people recover faster, avoid relapse and don’t cycle back through inpatient care.

“But when the right housing and support isn’t there, people are left waiting in hospital beds they no longer need, at huge cost to both individuals and the NHS. Supported housing must be recognised and funded as core mental health infrastructure, not as an optional add‑on.”

Dr Jon Van Niekerk, chair of the RCP’s general adult faculty said: “Secure and appropriate housing is a fundamental component of effective mental health care.

“Greater alignment between health and housing policy is essential to ensure people can leave hospital safely and sustain their recovery in the community”.