Whilst the government has shelved LHA to restrict rent for supported and sheltered housing, the Government has  announced its plans for the future funding of sheltered and supported housing following last week’s announcement that the local housing allowance cap will be shelved.

It proposes separate funding regimes, one for extra care and sheltered housing and one for short term supported housing. The paper signals that the government has listened to many of the views of the sector and recognises there should be a different funding regime to general needs housing and that sheltered and supported housing provides a net benefit to the economy.

The Government is proposing a “sheltered housing rent”  – consisting of rent and service charges – which will be enforced by the regulator in the same way as the current rent standard. Much depends on the level of the “rent” and the Government is asking for views on how this should be set. The paper mentions that the rent may be set in a series of bands depending on the level of service provided.

It is not yet clear how the rent and service charge payments will be calculated – we are not out of the woods yet on this – you are encouraged to respond to this paper

The Government has opened a consultation period which will run to 23rd January 2019. The consultation paper can be found here.


For the Home Group it has signalled a move to build supported homes again, others are thinking along the same lines.

Home Group announced £50m of capital investment in supported housing following Theresa May’s U-turn over the Local Housing Allowance (LHA) cap.

Home Group, which owns and manages more than 53,400 homes, will pour the cash into three schemes expected to total 229 units for older people and people with learning disabilities. Some are more cautious, many bids to the HCA for supported and sheltered homes are still on ice awaiting the details of the governments plans.

How will supported/sheltered rents and service charges be calculated – get involved in the debate and follow what is happening with your landlord