Urgent reforms needed to fix ‘complete mess’ of exempt accommodation, MPs say

The MPs’ report claimed that some people’s situations actually deteriorate as a result of the “shocking conditions” in which they live.

The committee heard evidence of squalid environments, vermin, drug-taking, crime (including organised crime) and abuse. Among the very worst experiences heard, stories included residents being raped and sexually harassed by their landlords under threat of eviction.

Staff and landlords were accused of threatening residents, selling drugs to them and being complicit in anti-social behaviour. The committee was told of residents being made to undertake work on the property, for nothing or very little.

As a result of its inquiry, the committee made several recommendations.  

The MPs said there was “compelling evidence” for national standards for referrals, support and accommodation. It said that within the next 12 months the government should publish these and give local authorities the power and resources to enforce them.

On the standards for the referral process, MPs said this should include a needs assessment, care, support or supervision to help them progress towards independence and employment.

The committee also urged the government to provide new funding to local authorities to ensure that they can carry out these duties to the best of their ability.

The report said better oversight of exempt accommodation is needed to get a grip on the “dire issues”.

It recommended a national oversight committee should be “urgently established”, consisting of the existing regulators.

The cross-party committee said that if the regulators worked more closely together in a more structured way it could improve monitoring of exempt accommodation.

The report also recommended the government make it compulsory for all supported housing providers to be registered. It said there needs to be a mechanism to ensure that there is better-quality provision and that standards are maintained.

The MPs also called on the government to set out how it will clamp down on those exploiting the lease-based model for profit and prohibit lease-based profit-making schemes from being set up. 

The report said the lease-based model “has its place in exempt accommodation”.

However, it added: “It can be exploited by those whose primary objective is to make huge profits at the expense of the taxpayer.” 

The government should also consider how to give councils greater control over rents for exempt accommodation to ensure value for money, the MPs recommended.  

A review of exempt housing benefit claims should be conducted to determine how much is being spent and on what, the committee said. 

The MPs also called for better data on the sub-sector. It said the government should organise the collection and publication of annual statistics at a local authority level for the exempt sector. 

The committee said that data should be collected on the number of claimants, the number of providers, and the amount of money paid by both the Department for Work and Pensions and the local authority in exempt accommodation housing benefit.

The report also said the government should ensure that providers of exempt accommodation for survivors of domestic abuse have recognised expertise to provide specialist support and a safe environment. 

Sam Lister, policy and practice officer at the Chartered Institute of Housing, who provided evidence to the committee, said: “The report is conclusive of our findings which showed the current systems of regulation, of which there are several, are not well co-ordinated, leaving gaps that unscrupulous landlords can and do exploit.

“We are pleased the committee has recognised this. A key aim of any legislation to tackle the problem must be to close these regulatory gaps.”

The Department for Levelling Up, Housing and Communities (DLUHC) said that the department is working to stop “unscrupulous landlords” exploiting vulnerable people for profit.

“It is unacceptable that unscrupulous landlords are trying to profit at the expense of vulnerable people and we are bringing forward a package of measures to stop them in their tracks,” said a spokesperson from DLUHC.

“This is backed by a £20m investment to drive up quality in the supported housing sector and protect the most vulnerable in society.”

Conservative MP Bob Blackman tabled a private members’ bill in June to tighten up regulation and oversight of the exempt accommodation sector. The bill is due to receive its second reading in parliament on 18 November.

However private members’ bills rarely become law and are normally used to the raise the profile of an issue. 

Update: at 1.02pm, 4.11.22

Responses from organisations mentioned in the report have been added below