Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
New supported housing licensing scheme risks unintended consequences for providers and residents.
Conclusion
However, there is a risk of unintended consequences from the licensing scheme, including discouraging good quality supported housing providers. The NAO reported that some concerns had been raised by stakeholders, including from local authorities, that small or specialist non-commissioned supported housing providers may leave the sector or that it may force unscrupulous landlords to a different housing sector.36 DLUHC stressed to us 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 acknowledged 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.
Government Response Summary
The government agrees, acknowledging the risk of unintended consequences from the licensing scheme. DLUHC commits to taking a proportionate approach and will publish a consultation in early 2024, followed by impact assessments alongside the regulations, to balance costs and protect good quality providers.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 4.2 The Act makes provision for licensing Regulations to require or permit the licensing 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. 4.3 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. 4.4 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. 4.5 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.