Select committee: Housing, Communities and Local Government Committee
Recommendation 16
Third Report - Exempt Accommodation
Published 27 Oct 2022
Paragraph 86
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Exempt Accommodation All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Providers of exempt accommodation are supposed to be not-for-profit, and there are many responsible providers, some of whom gave evidence to us. However, we also heard that the current system offers a licence to print money to those who wish to exploit it. We do not agree with the former Minister that using Freedom of Information requests to determine potential rent levels is a viable business model. Instead it gives the impression of a cartel pushing up rent levels and pocketing the excess at the expense of vulnerable residents and the taxpayer. The bar for local authorities to challenge rent levels is too high and appeals have rarely found in the council’s favour. Eligibility for funding for exempt accommodation must be based on an open-book, transparent breakdown of the accommodation and the support costs incurred to the provider. The Government should consider how to give councils greater control over rents for exempt accommodation to ensure value for money.
From: Housing, Communities and Local Government Committee, Third Report - Exempt Accommodation (HC 21), paragraph 86, 27 October 2022
Government response
The government responded to the whole report on 27 June 2023 (deadline 27 December 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government says it "strongly welcome[s]" the Committee's recommendations and is supporting the Supported Housing (Regulatory Oversight) Bill, which it believes, "subject to Royal Assent", will address many of the issues raised.
- On national standards and licensing, the government says it will "formally consult" with the sector to develop the licensing scheme and national standards for support "as soon as possible after Royal Assent".
- On mandatory registration of all providers with the Regulator of Social Housing, it gives its reasons, including the risk of reclassification of the sector as public, and considers the Bill's measures "better placed" to provide oversight.
- On rent caps, it says it "cannot effectively determine a standardised rent cap at this point", citing the complexity and range of housing models in the sector.
- On data, it says research on the size, cost and demand of the sector will be published "by the end of 2023".