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Specialist Supported Housing: current challenges to the provision of good quality housing

15 January 2025

Specialist supported housing

A common concern amongst developers, registered providers and care providers is that vulnerable people in the Specialist Supported Housing (“SSH”) space are at risk due to a lack of quality supported housing.

SSH refers to accommodation designed for individuals with specific needs, such as disabilities, mental health conditions, or other vulnerabilities. Such housing ensures vulnerable people have safe and secure accommodation that empowers them to live as independently as possible.

However, various factors are reducing the availability of good quality specialised supported housing.

Sub-standard provision

As demand for SSH has increased, so too have new entrants to the market seeking to meet the need. However, the provision of housing is often sub-standard, failing to deliver a product that is suitably adapted to suit the requirements of the service users. This shortfall is leaving vulnerable residents without the support they need, and damaging trust in the SSH sector.

Diminishing investment

We have seen a noticeable decline in investment, particularly from Real Estate Investment Trusts (“REITs”) and other key funds. Rising inflation, interest rates, global affairs, construction costs along with well as complex housing and care regulations have made SSH projects less attractive to investors, leading many to search for alternative opportunities. This reduction of investment is further exacerbating the shortfall in housing supply for vulnerable individuals.

Lack of funding

Another cause of the current lack of SSH is the lack of bank finance available to developers and investors. Despite growing demand in this space, its often difficult to secure finance due to the perceived risks associated with this sector. This can be due to a lack of understanding of the SSH sector and a failure to appreciate how these projects are funded as well as concerns regarding risks to their security due to the complex and vulnerable nature of those who will occupy the properties over which the bank will take security.

Lack of long-term planning and understanding

The lack of long-term planning from the government in respect of SSH as well as a lack of understanding of SSH on the part of local authority commissioners and housing benefit teams and the capital funding models associated with it is also severely hindering the provision of good quality specialised supported housing.

Solution

It’s clear things must change in order to ensure there are sufficient volumes of good quality specialised supported housing to meet current and future demands. There must be a focus on strategic long-term planning on the part of the government that also brings together all the relevant stakeholders in delivering this.

Working within a complex, layered sector will always bring challenges, but it is clear that ensuring there is a sufficient supply of good quality specialised supported housing will result in significant savings for the public purse and most importantly ensure a positive impact on many more lives.

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