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Councils have been given £20 million to share in a crackdown on rogue landlords preying on vulnerable tenants.
The money will help councils investigate landlords who claim benefits for their supported living tenants but fail to pass on the money.
Supported living is when a tenant in private rented housing receives care, support or supervision linked with where they live.
For example, support is often provided to those with experience of homelessness, mental health issues or who are victims of domestic abuse.
But many landlords are accused of claiming benefits for their tenants without providing the services the cash should pay for.
Under the new rules, landlords must offer better accommodation and support or face civil penalties of up to £30,000, closure of dangerous properties or prosecution.
The money will go to councils for funding the inspection of supported living accommodation, ensuring the money is spent on tenant needs and not going straight into a landlord’s pocket.
Housing Secretary Michael Gove said: “Time’s up for rogue landlords who take money from the taxpayer while exploiting vulnerable people.
“We are stepping in to help councils crack down on this appalling activity, and I will be working closely with Bob Blackman on his Private Members’ Bill to deliver tough new laws to end this practice once and for all.”
The Tory MP’s Supported Housing (Regulatory Oversight) Bill is at the committee stage in Parliament.
The Supported Housing Improvement Programme funds announced by Gove follow successful pilots in Birmingham, Blackburn, Darwen, Blackpool and Hull, which helped the councils carry out more than a thousand supported housing property inspections backed by a cash injection of £5 million from the government.
A further £6 million was awarded to these councils through the Supported Housing Programme in August 2022 to help them continue their work.
The supported living pilot identified three types of providers in a leaked report -
One provider was found to charge tenants £200 a week in Birmingham, even though the local housing cap for shared housing was £57 a week.
The report explains tens of millions of pounds are paid to providers each year, with much going to providers offering poor accommodation and support.
Supported housing combines accommodation and support services to help vulnerable people live as independently as they can.
The government has a National Standard of Expectations for landlords and carers.
The main financial support comes from housing benefit and universal credit.
No, care homes are not counted as supported living.