Director
The long awaited feedback on the Government consultation in 2025 was published on the 16 April 2026. DTP have provided our summary of key changes below and welcome the Government’s consideration of the many concerns that were highlighted by providers as part of the consultation. We are able to support providers in considering the implications arising from the new licensing scheme and National Supported Housing Standards (NSHS), including providing briefings for leadership teams and Boards. Please contact DTP Director, Sarah Jackson for further information [email protected]
The Government has maintained the core aim of the Supported Housing (Regulatory Oversight) Act 2023: to tackle poor-quality and exploitative supported housing, particularly within the exempt accommodation market. The response confirms that the NSHS, licensing scheme, and stronger links to Housing Benefit eligibility will be introduced. However, the Government has significantly refined its approach to ensure the system is proportionate, workable, and does not undermine good-quality provision.
Respondents highlighted that the original proposals would be overly bureaucratic, particularly for providers with dispersed provision, and could divert resources away from frontline support. There were also strong concerns that duplicating existing regulation would undermine viable schemes and reduce supply. The Government accepted these concerns and risks and has redesigned the system to focus enforcement on genuinely poor provision whilst protecting good providers.
Exemptions:
The list of exemptions from licensing has been expanded to include low-risk or already well-regulated provision such as over-55s housing and extra care regulated by the Regulator of Social Housing, domestic abuse accommodation commissioned under the Domestic Abuse Act, local authority managed supported housing, and certain criminal justice and Ofsted-regulated provision. Further clarity will be provided in relation to intergenerational extra care where need levels and vulnerabilities may be above the usual levels provided within extra care.
Licensing:
The licensing model has shifted away from a property by property approach. Licences will instead be held by the provider or person managing supported housing within each local authority area, covering multiple properties under a single application. There will also be a strengthened ‘fit and proper persons’ test which is more closely aligned to CQC and Ofsted requirements. Licensing charges passed on to providers by the local authority will be eligible for Housing Benefit through service charges – local authorities will need to consult on their proposed licensing charges. Individuals who hold licenses will be personally responsible/liable should there be a service failure – providers will need to consider appropriate liability insurance (in the same way that they do for their Boards).
National Supported Housing Standards (NSHS):
The standards remain mandatory but have been refined. The Government has committed to issuing further guidance alongside the standards to support consistent interpretation. The Responsible Person Standard has been removed to reflect duplication. Other small changes have been made to the other standards (the consultation response summarises all of the changes). Public body commissioned services (local authorities, NHS etc) will not be subjected to the NSHS.
Housing Benefit (HB) Eligibility:
The Government confirmed the principle of linking Housing Benefit eligibility to compliance with standards and licensing. If a license is refused, HB can be stopped or reassessed. Local authorities will be expected to support residents, including with rehousing options if needed. There will not now be a definition of care/support/supervision due to the standards and licensing system being focused on the quality of supported housing and support provided.
It is clear that the Government has carefully considered feedback from the sector and allowed for more flexibility and pragmatism in its revised approach. There are still finer details to be confirmed which will become clearer when the new regulations are published towards the end of 2026. Early indications are that the licensing scheme will begin in 2027, however final timescales will be confirmed once the regulations are published.
In terms of preparing for the introduction of the licensing and the NSHS’s, there is much that providers should be considering, particularly where there are third party arrangements in place for the delivery of services to tenants:
