Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Assess how local authorities can set licensing scheme fees to deter poor housing providers.
Conclusion
The Supported Housing (Regulatory Oversight) Act 2023 gives local authorities more powers over providers of supported housing but there is a risk of unintended consequences, including discouraging good quality providers. The Act gives powers to local authorities to set up licensing schemes for supported housing providers to join and adhere to the framework of standards locally. DLUHC intends to assess if new burdens funding is needed to help local authorities set up licensing schemes but expects local authorities will then cover ongoing running costs by charging fees to housing providers to join the scheme. Local authorities will need to achieve a difficult balance of charging fees to housing providers that are enough to cover local authorities’ costs, but not so much that they deter good quality landlords. DLUHC stresses that it is mindful of unintended consequences, in particular, the potential to create uncertainty and anxiety among providers which in turn, risks some people’s needs not being met. It acknowledges the need for a licensing regime that is robust enough to ensures that standards are being upheld, while not pushing good providers out of the market unnecessarily. However, DLUHC has not convinced us that it is on top of this problem as it has not assessed the potential costs to landlords. Recommendation 4: DLUHC should assess how local authorities can set up licensing schemes with appropriate levels of fees that will deter poor providers and encourage good quality supported housing.
Government Response Summary
DLUHC will publish a consultation in early 2024 seeking views on the licensing regime's design, including appropriate fee levels, and will incorporate this into impact assessments published alongside the regulations to ensure a proportionate approach.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. authority to charge fees covering the cost of performing the authority’s functions, as set out in the Regulations. The government recognises that providing supported housing is a low-margin activity for many good providers, so any additional costs must be balanced against the impact on new and existing schemes. DLUHC will take a proportionate approach to these reforms to protect good quality supported housing. DLUHC must ensure the measures work as intended so that all supported housing is of good quality and that LAs are able to effectively enforce against poor quality provision. A consultation on the measures contained in the Act will be published in early 2024. This consultation will ask for views on the proposed design of the licensing regime and all responses will be analysed carefully. Impact assessments will be published alongside the regulations for the licensing regime. These regulations will be drafted and consulted upon after the first consultation responses have been analysed. The level of any fees will be considered as part of that impact assessment.