The new definition should be produced by the Department for Education to "allow a better understanding of the issues and provide a secure basis for policy and practice", the Independent Children's Home Association (ICHA) claimed.
The call follows news reports about teenagers who have been placed in unsafe and unregulated settings by local authorities.
Children's minister Nadhim Zahawi recently referred to children's homes in an interview with BBC Newsnight, while talking about unregulated settings, which include post-16 semi-supported and supported accommodation.
He said he was looking into the options for regulation and added that he has written to all directors of children's services to raise concerns over the issue.
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