Supported Housing Regulatory Oversight Act

The Supported Housing (Regulatory Oversight) Act 2023 introduces powers to create a licensing regime for supported housing, set National Supported Housing Standards for England and link the payment of Enhanced Housing Benefit to holding a supported housing licence. It also places a duty on local housing authorities to undertake a current and future needs assessment and produce a supported housing strategy.

The government published its consultation response on 16 April 2026, setting out its position on supported housing licensing, the National Supported Housing Standards, planning, and Housing Benefit changes. Both MHCLG and DWP are now drafting regulations, with MHCLG expecting to consult on draft regulations in late 2026 before laying them in Parliament. In practice, this means provisions, other than the Supported Housing Strategy requirements discussed below, are unlikely to come into force before mid-2027.

The statutory guidance for local authorities on preparing and delivering Local Supported Housing Strategies, was published in February 2026. This guidance sets out councils’ duties to assess local supply and need for supported housing, work collaboratively with social care and health partners, and develop long-term plans that align housing, care and support provision. Strategies must be published by 31 March 2027 and updated at least every five years, with regular annual reporting to MHCLG. The guidance also encourages broader, joined-up planning across housing with care and support models, robust governance arrangements, and meaningful engagement with providers and people with lived experience.

Under the current proposals, the main implications for providers are likely to include:

• Meeting and evidencing the National Supported Housing Standards. The standards are: Person-centred support; Empowerment; Environment; Staff and safeguarding; Local need; and Statement of purpose. Good quality services should be able to meet these standards, although this may bring an increased administrative burden.
• Agreeing which organisation should be the licence holder, where services are delivering in partnership (for example managing agent arrangement), and how the two organisations will work together to ensure the standards are met and evidenced. The Act sets out that the supported housing licence holder must be the person ‘managing or in control of’ the supported exempt accommodation. The consultation response suggests where there is any doubt on who should apply for the licence, an applicant may wish to discuss this with the licensing authority.
• Close working with the local authority. Providers must be able to demonstrate how they have consulted with local partners, including the local authority, residents, and community groups, in setting up the scheme, and how the scheme reflects need identified in the local supported housing strategy (once published). This applies whether or not the service is commissioned.
• The cost of becoming licenced, although for some services this may be offset by the Supported Housing Licence replacing the need for an HMO licence, although it is not yet clear if this will be the case.
• The interaction with other regulatory regimes:
  • There are a range of exemptions for services that are already regulated or have significant oversight (see above).
  • Registered Providers will not be exempt from licences; however, the consultation is not suggesting new accommodation standards, rather buildings should meet the existing accommodation requirements and standards relevant to their housing tenure.
  • Commissioned services will need a licence, but will not be required to comply with the National Supported Housing Standards licensing condition.
• All supported housing providers will need to hold a licence, or demonstrate that it meets an exemption, in order for its residents to be eligible to receive Enhanced Housing Benefit. The government has decided to postpone defining "care, support or supervision" in Housing Benefit regulations until the licensing regime is in effect, so the existing "more than minimal" case law threshold continues to apply.

Homeless Link is working extensively to influence the implementation of this regulation.

Our submission to the formal consultation is linked above.

Our blog on the latest intelligence on the regulations is linked above.

Or you can contact Alex Worrell for more updates.