Essential smaller housing providers at risk as calls for reform increase

This is one of the reasons that there are increasing calls to reform the current system, but this needs to be done carefully so that smaller providers don’t end up paying the price.

No one would argue that reform isn’t needed. For several years now we’ve seen terrible headlines coming out of the sector, revealing how some young people and vulnerable adults have been left without the support they need, while their landlords pick up hefty housing benefit receipts on their behalf.

Where there isn’t agreement is when it comes to what should be done.

Last week the call for evidence closed on the Levelling Up Committee’s inquiry into exempt accommodation, looking into this type of supported housing, which is “exempt” from Housing Benefit rules limiting rents to particular levels. Its residents are some of the country’s most vulnerable people with particular support needs; victims of domestic abuse, people who are struggling with substance abuse and those with nowhere to call home.

Working with this group is about understanding and responding to their difficult and complex needs. Done well, it can be life-changing, but done without care and without the necessary resources, it can put vulnerable people at risk.

There is now increasing support for calls for more regulation of the sector. Most providers know the value they provide and would welcome that too.

At Centrepoint we partner with many smaller organisations doing excellent work with vulnerable young people. We worked with them to pull together our submission to the inquiry and everyone agreed better regulation was needed to keep young people safe.

The flaw of the current system is that it allows a small number of landlords to claim “exempt accommodation” status, and enjoy the lucrative pay out of rental income boosted by service charges; without requiring them to prove they are delivering the support and care that these tenants need.

These few unscrupulous landlords are a few too many, but local authorities have limited powers to deal with these providers and many say they lack the finances to commission better quality provision in its place.

Reform is needed - but we mustn’t throw the baby out with the bath water, and create a regulatory system that punishes smaller providers for their size, never mind their quality.

Get this wrong and we risk losing many fantastic, essential smaller providers who do not have the financial means or administrative resources to complete burdensome regulation tasks. It’s absolutely right that this is a loud debate – vulnerable young people have suffered for want of a properly regulated system. But we must ensure these smaller providers’ voices are not lost, that they are listened to and worked with. Smaller providers cannot be left out to dry as more rigorous oversight could prove too onerous for these valuable providers.

Better regulation can only take us so far. We also need to ensure that providers have the funding to do a high quality job and local authorities have the resources to demand it. This would mean that local councils would have more time and resources to put a stop to these unscrupulous landlords without punishing smaller quality providers for their size. Crucially, it means putting vulnerable young people’s needs at the heart of any reform.

Lisa Waring is head of partnerships at Centrepoint.