Recommendation 4

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.