Shocking statistics for unregulated rental accommodat...

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22 October 2021

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Shocking statistics for unregulated rental accommodation

Over 150,000 households in Britain are in ‘exempt’ accommodation, a rental sector which some say is “dangerously under-regulated.”

‘Exempt accommodation’ is intended for people with support needs, including those who have been homeless, recently left prison, fled domestic violence or are dealing with addiction issues.

The housing is supposed to come with additional support, which makes it ‘exempt’ from caps on Local Housing Allowance to cover the costs.

This allows providers to charge higher rents, which are covered 100 per cent by the Department of Work and Pensions through Housing Benefit.

However the homeless charity Crisis claims that due to a lack of regulation, many exempt providers are abusing the system for financial gain: providing little or no support, whilst leaving tenants in poorly managed, often dangerous accommodation.

Freedom of Information data obtained by Crisis shows that 153,701 households in Great Britain were housed in exempt accommodation as of May 2021.

This represents a 62 per cent increase from 2016 to 2021.

Through a separate FOI, it's been revealed that at least £816m was spent by government on exempt accommodation in the last financial year alone.

Jon Sparkes, chief executive of Crisis, says: “The exempt accommodation sector is dangerously under-regulated. There are some good providers out there, but so many others are motivated only by money and are able to charge higher rents for essential support they have no intention of providing.

“It is unacceptable that the system lets them get away with it. People trying to end their homelessness, fleeing domestic abuse or tackling complex addiction issues are being forced from one trauma to another – all at huge expense to the public purse.

“We desperately need stronger regulation to keep the wrong people out of the sector and ensure that quality support and accommodation is provided to people in some of the most vulnerable circumstances.”

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