Private landlord advice

Supported exempt accommodation is an important part of the supported housing sector in England. It provides housing alongside care, support or supervision, usually for people with additional needs. Despite the name, it is not automatically exempt from HMO licensing.

This page explains what supported exempt accommodation is, when it is exempt, and when an HMO licence is still required.

What Supported Exempt Accommodation Means

Supported housing covers many types of accommodation offered with support or care. Exempt accommodation is a specific category within this sector, defined in Housing Benefit regulations. To qualify, a provider must:

• Be a not-for-profit organisation such as housing association, registered charity or voluntary organisation
• Provide care, support or supervision directly or through someone action on their behalf

This definition comes from government and parliamentary guidance on exempt accommodation and Housing Benefit rules.

What Exemption Does and Does Not Cover

Exempt accommodation is exempt from certain Housing Benefit restrictions. It is not automatically exempt from property licensing laws.

There is no national rule saying that supported or exempt accommodation does not require an HMO licence. Licensing duties under the Housing Act 2004 still apply where a property meets the definition of an HMO. Parliamentary and government publications confirm that exempt accommodation relates to Housing Benefit rules, not property licensing.

When an HMO Licence Is Still Required

A supported housing property will still require an HMO licence if:

• It is occupied by at least 5 people forming more than one household
• The occupiers share facilities such as kitchens or bathrooms
• It falls within the scope of mandatory or additional HMO Licensing in the local authority areas

Nothing in national guidance removes this requirement. Supported housing and exempt accommodation are about support and Housing Benefit, not about licensing exemptions.

When Supported Exempt Accommodation May Be Treated Differently

Some providers of supported exempt accommodation may be subject to upcoming national licensing schemes specific to supported housing. The Supported Housing Regulatory Oversight Act 2023 introduces a framework for new licensing regulations designed specifically for supported exempt accommodation. This is separate from HMO licensing and is expected to operate alongside or in place of existing HMO schemes depending on how secondary legislation is enacted.

This future licensing regime is intended to improve standards and oversight across the supported housing sector. Until it is fully implemented, standard HMO licensing laws continue to apply.

Key Points for Providers

• Calling a property supported accommodation or exempt accommodation does not remove the need for an HMO licence
• Exemption relates to Housing Benefit rules, not to housing safety or licensing requirements
• Providers must comply with all existing HMO licensing duties unless specific national regulations state otherwise
• New supported housing licensing rules are being developed but are not yet in force in most areas