Supported housing licensingexplained.
What the Supported Housing (Regulatory Oversight) Act 2023 means for Registered Providers, managing agents and support providers: the new standards, who will need a licence, the link to Housing Benefit, and what to do now.
Contents
Key takeaways
- Supported exempt accommodation in England will need a local licence, expected from 2027.
- Meeting the National Supported Housing Standards will be a licence condition, except for most commissioned services.
- Enhanced Housing Benefit will be linked to holding a licence.
- Needs assessments within four weeks of move-in will be a licence condition.
- Draft regulations are expected for consultation in late 2026. Now is the time to get resident files in order.
What does the Supported Housing (Regulatory Oversight) Act 2023 do?
The Supported Housing (Regulatory Oversight) Act 2023 gives the government powers to regulate supported exempt accommodation in England. It received Royal Assent on 29 June 2023.1 It has three main strands:
- National Supported Housing Standards for the support provided to residents.
- A local licensing regime, run by local housing authorities, for those managing supported exempt accommodation, with compliance with the standards as a licence condition.
- Local supported housing strategies, which every local housing authority must publish to set out current supply and future need.
The Act also created a national Supported Housing Advisory Panel. The powers are being brought in through regulations, which is why the detail has taken time to settle.1,5
Why was it introduced?
Supported exempt accommodation grew quickly in some areas, and so did concerns about quality and value for money. In October 2022 the Levelling Up, Housing and Communities Committee described the system as "a complete mess", and called for national standards and enforcement powers for councils.8
Some councils were already acting. Birmingham, which had more than 20,000 units of supported exempt accommodation, launched a residents' charter and provider quality standards in March 2021.10 The government's £20 million Supported Housing Improvement Programme then funded councils from 2022 to 2025 to inspect properties, review residents' support and scrutinise Housing Benefit claims.7
The reforms are meant to make sure supported housing delivers the support people need. For providers, the test will be whether their records show it.Support Audit
What are the National Supported Housing Standards?
The National Supported Housing Standards set out what good support looks like. They rest on five principles: person-centred, respectful, safe and responsive, effective, and well-led. The government response of 16 April 2026 confirmed six standards. A proposed seventh, the responsible person standard, was dropped.2
| Standard | What it expects |
|---|---|
| Person-centred support | Needs assessments, tailored support plans and consistent support. Advocates can help co-produce plans. |
| Empowerment | Residents involved in developing the service, informed about their support and able to use clear complaints procedures. |
| Environment | Support in a clean, comfortable setting, with risk management, managed referrals and a way to report repairs. |
| Staff and safeguarding | Trained, DBS-checked staff in sufficient numbers, with poor performance addressed. |
| Local need | Consultation with local partners, links to local services and fit with the local strategy. Applies once strategies are published. |
| Statement of purpose | A clear ethos, aims, outcomes and partnerships, reviewed every year. |
Who will need a supported housing licence?
A licence will be needed for all supported exempt accommodation that matches the Housing Benefit definition of specified accommodation. It must be obtained by the person managing or in control of the properties, in each licensing district where they operate. Each licence will list the addresses the holder is authorised to run.2
Licence conditions confirmed in the government response include:2
- A fit and proper person test, extended to directors, partners and nominated individuals, with an enhanced test where residents are vulnerable.
- Accommodation meeting existing property standards, such as the Decent Homes Standard or the Housing Health and Safety Rating System.
- CQC registration where any care is provided.
- A needs assessment within four weeks of a resident moving in.
- A suitability condition for service managers.
- Compliance with the National Supported Housing Standards, for non-commissioned services.
There will be no extra local conditions. Licence conditions will be the same nationwide, with guidance to promote consistent decisions. Fees will be set to cover costs only.2,3
Which services are exempt from licensing?
The government response lists services that will not need a licence, including:2
- Ministry of Justice-commissioned accommodation for people leaving custody.
- Supported housing with at least one Ofsted-regulated bed for residents up to 25.
- Accommodation managed or controlled by a local authority, with support commissioned by the authority or another public body.
- Commissioned domestic abuse services.
- Age-restricted housing for over-55s regulated by the Regulator of Social Housing, including extra care.
- Almshouses.
Commissioned services that do need a licence will not have to meet the standards as a licence condition. Instead, commissioners are expected to commission support in line with the standards.2,3
What does licensing mean for Housing Benefit?
The government will amend Housing Benefit regulations to link enhanced Housing Benefit in England to the licensing regime.2 In practice, accommodation that should be licensed but isn't is likely to lose access to rent above Local Housing Allowance levels.
Providers found in breach and put on notice to improve will have at least three months to put things right.2 Proposals for new definitions of care, support and supervision, and a minimum threshold for support, have been paused until licensing is in place.2,3
Who is responsible: landlord, managing agent or support provider?
Many supported housing arrangements involve a Registered Provider as landlord, a managing agent and sometimes a separate support provider. The government response says the support standards can be met in full by the support provider, while the housing elements fall to the licence holder through other conditions. Where one organisation provides both housing and support, it needs both in place.2
Homeless Link notes that clarity on who holds the licence where several parties are involved is still limited. Applicants are encouraged to speak to their licensing authority, and the government plans to publish illustrative case studies.3 Whatever the final position, each party will want evidence that the support recorded in resident files meets the standards.
When will supported housing licensing start?
No commencement date has been set. The government expects to consult on draft regulations in late 2026, then lay them before Parliament. Licensing is expected to begin at some point in 2027.2,3
| Date | Milestone |
|---|---|
| 29 June 2023 | Act receives Royal Assent |
| 2025 | Consultation on standards, licensing and Housing Benefit |
| 16 April 2026 | Government response published (updated 19 June 2026) |
| Late 2026 | Consultation on draft regulations expected |
| 31 March 2027 | Local supported housing strategies due |
| 2027 | Licensing expected to begin |
The government is not introducing a planning use class for supported housing for now. The Act requires a review after three years.2
What should providers do now?
Regulations are not final, but the direction is clear. These steps are worth taking whatever the final detail:
- Map your arrangements. List every property, who manages it, who delivers support and which licensing district it sits in.
- Check needs assessments are prompt. Look at how long after move-in assessments are completed. Four weeks will be the licence condition.
- Link support plans to needs. Every goal should follow from an assessed need, and be agreed with the resident.
- Make support visible in session notes. Notes should show what support was given towards which goal, not only that contact happened.
- Close the loop on risk. Every risk that needs a plan should have a current, dated risk management plan.
- Hold reviews on time. Reviews at 3, 6 and 9 months, signed and dated by the resident and staff.
- Get an independent view. A Mock Audit shows what a licensing team or Registered Provider would find, while there is still time to fix it.
Questions
Do Registered Providers need a supported housing licence?
Registered Providers are not exempt as a category. A licence is needed by whoever manages or controls supported exempt accommodation, unless the service falls into one of the listed exemptions.
Will there be one licence per property?
No. Licences will be held per licensing district and list every address the holder is authorised to run, so most organisations will need one licence per area.
Will there be a minimum number of support hours?
Not yet. Plans for a minimum threshold for care and support have been paused until licensing is in place. Some Registered Providers already set their own minimum in their agreements with managing agents.
Does this apply in Scotland and Wales?
Licensing and the standards apply in England. The government has said it will not link Housing Benefit to statutory frameworks in Scotland and Wales.
Sources
- Supported Housing (Regulatory Oversight) Act 2023legislation.gov.uk
- Supported housing regulation: consultation, government responseMHCLG and DWP · 16 April 2026, updated 19 June 2026
- Key changes to how supported housing regulations will be implementedHomeless Link · 28 April 2026
- Supported housing in focusTrowers & Hamlins · July 2026
- Supported housing: National Statement of ExpectationsMHCLG · 20 October 2020
- Exempt Accommodation: Third Report of Session 2022–23Levelling Up, Housing and Communities Committee · October 2022
- Charter of rights and quality standards for exempt supported housingBVSC and Birmingham City Council · March 2021
This guide summarises published government material and is not legal advice. Regulations are not yet final, and we update this page when they change.