Motion on Exempt Accommodation

Council notes that exempt (supported) accommodation continues to be a growing phenomenon in Birmingham and other cities. Despite years of cross-party campaigning to regulate the sector effectively (including a Scrutiny Report by this Council published in December 2021) we are still awaiting Government action. As a result, our communities and those living in exempt accommodation, continue to suffer.


Family homes in Birmingham are attractive to landlords to convert into exempt accommodation as they can provide lucrative yields. Residents come from far and wide, alone, often with problems such as addiction, trauma, mental health problems etc. Support services provided by exempt providers, via 3rd party companies are often minimal and ineffective. This wastes public money, fails residents and can cause significant anti-social behaviour to neighbours. Where exempt properties cluster, the impact on communities can be devastating.

Council notes that a key reason for the growth in the exempt sector has been chronic under-investment in social housing. Birmingham has half the council homes we had forty years ago, and a much bigger population. Rents have raised much faster than average earnings.

As of January 2025, approximately 25,000 people in Birmingham are in exempt accommodation, and 20,000 are in temporary accommodation.

Council notes that the Supported Housing (Regulatory Oversight) Act 2023 received royal assent in August 2023. The Act required licensing regulations to be set up within a year and a Supported Housing Advisory Panel to be set up. This has not yet happened. The Act also required the Panel to consider changes to planning regulations within 3 years of new licensing regulations being set up. On such a timetable, new planning regulations may not actually come into force this decade. Council further notes that the Supported Housing Improvement Pilot (SHIP) funding, received from Government since 2020, has provided an opportunity for improvements in the sector, while new regulations are awaited.

However, Government funding for the programme is due to end in March 2025, and without any concrete understanding of the likely regulations, the council is unable to develop a sustainable financial model to continue delivery.

Council therefore resolves to lobby the Government to:

  • 1. Set up the Supported Housing Advisory Panel now. 
  • 2. Bring exempt accommodation planning classification in line with HMOs immediately. 
  • 3. Lobby government to secure a continuation in SHIP funding until new regulations are in place.

Council notes that there is no centrally available register of information on privately rented properties including properties subject to licensing requirements, HMO’s and exempt accommodation. Issues with these properties are dealt with by different council departments. As a result, it is time consuming and inefficient for councillors to find the right person to speak to when problems arise. Furthermore, as information is not always shared effectively between departments, opportunities to improve standards and increase income by following up on licensing queries or fines are being missed.

Council resolves to:

  • 1. Set up a single searchable register of, (a) privately rented properties including properties subject to licensing requirements, (b) HMO’s, and (c) exempt accommodation, for officers and members. 
  • 2. Investigate the most effective way of improving the communication between departments regarding the use of homes and their regulation.