'Supported housing' captures a variety of accommodation provided to individuals with care and support needs. The care provided may be regulated by the CQC, but the CQC would not oversee the housing provision. Whilst providers involved in the delivery of supported housing may be regulated by the Regulator of Social Housing or the Charity Commission, these regulators will not inspect individual schemes. Currently, the housing and support provided in most supported housing schemes is not directly regulated. 

The Supported Housing (Regulatory Oversight) Act 2023 seeks to change this with a new, two-pronged regulatory regime comprising:-

• a new licensing regime; and
• the National Supported Housing Standards (NSHS).

Having consulted on the regime in early 2025, the government recently published its consultation response, which provides helpful insight as to what those involved in the delivery of supported housing can expect in the future. 

The licensing regime

Operated by local housing authorities, and based on a national framework and guidance to promote consistency across England, the new licensing regime will apply to ‘supported exempt accommodation’. 

Some accommodation will be exempted from the regime. The Government’s consultation confirmed, based on the consultation response, the list of exemptions would be expanded to include, amongst others:

• supported housing which contains at least one Ofsted-regulated bed, for residents aged up to 25 years old;
• commissioned domestic abuse services; and
• older people’s age specific over 55’s regulated supported housing, where the supported housing is regulated by the Regulator of Social Housing and where the care is regulated by the CQC. 

Those managing such exempt properties will need to inform the licensing authority of the relevant exemption that applies. It is then for the authority to confirm whether the exemption is applicable. 

Licences will need to be held by the person managing or in control of the supported housing. A single licence may cover multiple schemes within a local authority area, with each address listed on the licence. An individual licence holder will need to be nominated by organisations who, alongside their directors and other partners, must satisfy a ‘fit and proper person'’ test akin to that used by the CQC and Ofsted. Where ‘particularly vulnerable persons’ are supported, it is expected an enhanced version of this test will be applied – but there is no indication of how ‘particularly vulnerable’ will be defined. 

The licences will contain various mandatory conditions – including a requirement that housing meets existing accommodation requirements and standards relevant to housing tenure and that licence holders assure themselves that their service managers have the character, capacity, appropriate experience and skills to undertake the role. 

In England, entitlement to housing benefit will be conditional on accommodation holding a valid licence – therefore, securing and maintaining a licence will be critical to the financial viability of supported housing schemes.

National Supported Housing Standards (NSHS)

The NSHS is intended to ensure that supported housing meets residents’ needs and can achieve positive outcomes. Six standards have been proposed by the government, underpinned by the following five key principles:

• person-centred;
• respectful;
• safe and responsive;
• effective; and
• well-led.

Compliance with the NSHS will be required by the licensing regime, unless the care and support provided is already regulated by the CQC, or constitutes a ‘commissioned service’ - meaning a service that is already subject to the oversight of the local authority or another public body. It is clear from the consultation response that commissioners should require compliance with the NSHS within contractual arrangements with providers.

Impact on existing providers

For many providers involved in the delivery of supported housing, we do not consider significant changes will be required to comply with the new regime. For example, many of the proposed requirements and licence conditions mirror what Registered Providers of Social Housing are already required to do under the Consumer Standards – such as to comply with the Decent Homes Standard. 

That being said, where housing, and care or support are delivered by separate entities, providers will need to consider how the new regime will be reflected and embedded in contractual and practical arrangements.

What’s next?

It is expected that the Government will further consult on the proposed regulations later this year, with implementation and a transition period to follow.

Are you a supported housing provider looking for assistance? Please contact Emma Hardman, Lorna Kenyon-Pain, or your usual AC contact.