Select committee: Housing, Communities and Local Government Committee
Recommendation 24
Third Report - Exempt Accommodation
Published 27 Oct 2022
Paragraph 109
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)
The lease-based model has its place in exempt accommodation, by enabling access to properties for decent providers who would otherwise not be able to purchase properties outright. However, it can be exploited by those whose primary objective is to make huge profits at the expense of the taxpayer: we received examples of profits in the millions of pounds. The Government must set out how it will clamp down on those exploiting the lease-based model for profit and prohibit lease-based profit-making schemes from being set up. This should include how it will ensure that there is full transparency over ownership structures and how income from housing benefit is being used.
From: Housing, Communities and Local Government Committee, Third Report - Exempt Accommodation (HC 21), paragraph 109, 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".