The new rules are set to come into force in September following a consultation on such provision which launched last February, Education Secretary Gavin Williamson said.
The government is also set to introduce new national standards for unregulated accommodation for 16- and 17-year-olds and give Ofsted greater regulatory powers.
New legislation will also allow the inspectorate to take enforcement action against illegal unregistered providers.
The announcement has sparked a mixed reaction among the sector with many calling for a ban on the use of unregulated accommodation for all young people until they turn 18.
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