NHF research reveals supported housing shortage is leaving mental health patients stuck in hospital

An NHF survey has found that a third of supported housing providers in England have had to close schemes in the past year due to financial pressures.

Providers that are responsible for a fifth of all supported homes have said they may have to stop providing services altogether in future. This would mean the loss of 70,000 supported homes across the country. Schemes at risk include those for young people leaving care, older people, people with learning disabilities, survivors of domestic abuse and people who experienced homelessness.

This NHF research follows a government-commissioned report from last year that the supported housing sector may need to double over the next 15 years to tackle demand.

Rhys Moore, director of public impact at the NHF, said: “The shortage of supported housing is increasing pressure on public services, increasing homelessness, and costing the NHS and ultimately the taxpayer. Demand is higher than ever and yet every year more schemes are forced to close their doors.”

The NHF is calling on the government to clearly identify funding for housing-related support allocated to local authorities in England and to commit to significant investment in the Spending Review. It argued that at least £1.6bn annually is needed as part of the government’s long-term housing strategy.

It also warned that the planned rise in employers’ National Insurance contributions, due to come into effect from April, further threatens the viability of supported housing services.

While the government has provided a rebate for public employers, including local authorities and the NHS, there is no such protection for supported housing providers.

Currently there are around half a million supported homes in England. There are 1,540 fewer supported homes today than there were in 2007, while the population has grown by 12%.

Charitable providers bid for supported housing contracts from councils and provide homes with tailored support services. In 2008, the ringfence on council funding for housing-related support was removed.

As a result, when council budgets were slashed from 2010 onwards, this vital funding was diverted to other areas of council spending. This led to lower-value contracts year on year, with some councils decommissioning supported housing services altogether.

The NHF said the loss of these services has not only increased pressure and spending across public services, such as the NHS, but also puts people with support needs at risk of homelessness and poorer health outcomes.

According to research from the University of York, without supported housing, an additional 71,000 people would be homeless or at risk of homelessness. We also would need 14,000 more inpatient psychiatric places, 2,500 additional places in residential care and 2,000 more prison places.

The government was criticised recently by the Public Accounts Committee (PAC), which found that the housing department has made no progress in improving the oversight of the supported housing sector. 

PAC had expressed concerns that gaps in regulation mean landlords can provide costly, sub-standard housing with little support, supervision or care.

The Supported Housing (Regulatory Oversight) Act became law in August 2023. It brought forward national standards for supported housing and looked to give local authorities power to tackle poor-quality supported housing in their area. However by the end of 2024, the act had not been put into practice and the government is now seeking views on its implementation.

PAC was “not persuaded by MHCLG [Ministry of Housing, Communities and Local Government]’s argument that it still cannot commit to any form of timetable for implementing the provisions of the act” and called for it to be implemented as quickly as possible.

The government has said it “is committed to ensuring a sustainable supported housing sector which enables vulnerable people and those with disabilities to live as independently as possible within the community”, but it also “needs to ensure the system delivers value for money”.