One in ten homes for people with support needs at imminent risk of closing

More than 50,000 specialist homes in England for people with support needs – equivalent to 1 in 10 – are at imminent risk of closure, due to ongoing funding challenges and financial pressures, according to new data by the National Housing Federation (NHF).

Without these homes, tens of thousands of people with complex support needs will be pushed into homelessness or stuck in hospital beds and psychiatric hospitals, costing the taxpayer millions.

The NHF surveyed 126 not-for-profit supported housing providers, representing the majority (55%) of supported homes owned by housing associations in England. Over half (56%) of providers said they had schemes that were at imminent risk of closing if there was no urgent increase in funding for support services.[1] At the sharpest end, a fifth (22%) of providers said they may have to close all their services entirely, without emergency and long-term funding.[2]

Over a decade of funding cuts have pushed the operating margins of not-for-profit supported housing providers to the brink, making more and more schemes financially unviable. The National Audit Office estimates that between 2010 and 2020, funding for supported housing was cut by 75%. This means providers have been trying to provide the same support services with £1bn less every year.[3]

Supported housing provides support, supervision and care to people with a range of complex needs, allowing them to live independently in their own homes. Residents include young people leaving care, survivors of domestic abuse, older people and veterans, people with mental health needs and people with learning disabilities.

Without these homes, an additional 71,000 people would be homeless or at risk of homelessness, we would need 14,000 more inpatient psychiatric places, 2,500 additional places in residential care and 2,000 more prison places.[4] Supported housing reduces pressure across a range of public services, including the NHS, saving taxpayers £3.5bn per year. Last year, the shortage of supported housing resulted in 109,029 days of delayed discharge from mental health hospitals, costing the NHS an estimated £71m.[5]

The number of supported homes across England is now falling, against rising demand. We have fewer supported homes today than we did in 2007 – nearly two decades ago – and a total shortfall of up to 325,000 homes, based on unmet need.[6]

Supported housing contracts are commissioned by councils, based on local need. However, because of cuts to council budgets since 2010, the funding for these services has diminished, leading to lower value contracts year-on-year. Some councils have had no choice but to decommission their supported housing services altogether.[7] At the same time, charitable providers have faced increased cost pressures from rocketing inflation and energy prices, building safety repairs and the cost of meeting new government regulation and environmental targets. For many providers, this has made it impossible to cover their staffing and support costs, forcing them to close schemes.

Earlier this year, over a hundred and seventy cross-sector organisations, public bodies and charities, led by the NHF, wrote to the Prime Minister and Chancellor of the Exchequer calling for urgent action to save the country’s supported housing.[8] A further reduction in supported housing will impede the government’s mission to build an NHS fit for the future, tackle homelessness, and shift from ‘hospital to community’.

To secure the future of supported housing, the NHF is calling on the government to urgently commit to an emergency fund for services at imminent risk, and long-term and sustainable funding for support services, at the Autumn Budget. A vision for a sustainable supported housing sector must form part of the government’s long-term housing and homelessness strategies, recognising the essential role it plays in the lives of its residents, wider society and the economy.
 

Kate Henderson, Chief Executive of the National Housing Federation, says:  

“Hundreds of thousands of people across the country who need support to live independently, have a right to safe, secure and affordable housing. It is not only our duty as a society to provide these homes, it also benefits everyone, taking pressure off the NHS and other public services and benefiting the economy by creating jobs.

“For years, providers have had no choice but to reduce services because of cuts to funding and increasing financial pressures. Thousands of supported homes have been lost over the last few years alone and these residents are having their quality of life and opportunities taken away, as well as being at risk of homelessness.

“The government must urgently come up with a plan to identify long-term, sustainable funding, alongside emergency funding for supported housing, to prevent more schemes having to close their doors. The government has a chance to reverse the damage and in doing so drive growth, and safeguard thousands of people’s futures.”

[1] 71 of 126 supported housing providers surveyed, who own 55% of all supported homes provided by housing associations in England, said 14,385 supported homes were at risk of closure if there is no urgent commitment to long-term sustainable funding for supported housing. (August 2025)
[2] 28 supported housing providers, who said they may have to stop providing supported housing altogether, own 38,036 supported homes. (August 2025)
[3] https://www.housing.org.uk/resources/how-much-supported-housing-will-we-need-by-2040
[4] https://www.housing.org.uk/resources/research-into-the-supported-housing-sectors-impact-on-homelessness-prevention-health-and-wellbeing/
[5] NHS England (2024) Mental Health Services Monthly Statistics, April 2023 to March 2024
[6] MHCLG / DWP, Supported Housing Review 2023, https://www.gov.uk/government/publications/supported-housing-review-2023
[7] https://www.localgov.co.uk/Ring-fencing-removed-from-supporting-people/31127 https://www.theguardian.com/uk-news/2024/jan/29/how-a-decade-of-austerity-has-squeezed-council-budgets-in-england
[8] Supported housing is in crisis, letter to PM Keir Starmer says - BBC News