Birmingham is facing a mounting challenge as supported ‘exempt’ homeless hostels rapidly multiply across the city, profoundly altering neighborhoods and displacing families, a new investigation by BirminghamLive reveals.
In several inner-city streets, almost every house has been converted into multi-occupancy dwellings accommodating up to six unrelated individuals with complex needs. These residents often have little control over who they live with, creating difficult living conditions.
Official data shows that since before the Covid-19 pandemic, the number of ‘exempt’ properties and residents in Birmingham’s 69 wards has tripled. Currently, 33,904 people reside in 12,166 such properties, all financed through enhanced housing benefits that pay providers between £200 and £400 per room weekly.
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Back in 2018, fewer than 11,000 individuals lived in approximately 4,000 properties—numbers that closely matched local housing needs. Today, many occupants have been relocated from other parts of the country through referrals or aggressive advertising aimed at filling vacancies.
Despite persistent campaigns and pressure from local residents seeking tighter controls, little has changed over the past eight years. Providers continue to receive approval for new claims due to limited regulation and enforcement capabilities.
Law enforcement officials and Members of Parliament have linked the rise in exempt accommodations to increased criminal activity, antisocial behavior, and violence, with some areas reportedly connected to organized crime.
According to Birmingham City Council data, wards such as North Edgbaston, Sparkbrook and Balsall Heath East, Stockland Green, Aston, Soho and Jewellery Quarter, and Sparkhill each have over 450 exempt properties housing at least 1,000 residents. Others, including Gravelly Hill, Alum Rock, Birchfield, Bordesley Green, Erdington, Bordesley and Highgate, and Handsworth, have at least 300.
While these properties are far less common in affluent areas—Sutton Coldfield wards typically have fewer than 20 exempt accommodations each—they are widespread citywide.
When managed properly with adequate support, exempt accommodation can provide vital assistance to vulnerable groups such as young people leaving care, abuse survivors, individuals with mental health challenges, and recovering addicts.
However, the sector is frequently marred by problems including poor tenant vetting, bullying, conflicts, inadequate support, and numerous safeguarding failures. Alarmingly, five of the six largest providers in Birmingham do not comply with the Regulator of Social Housing’s standards.
Birmingham City Council acknowledges that efforts to curb the expansion of exempt housing are hindered by existing regulatory gaps. To address this, a multi-agency team works to investigate complaints, conduct inspections, and tackle antisocial behavior and crime. The council also rejects claims lacking sufficient evidence of tenant support and operates a voluntary accreditation scheme for providers.
In a recent full council meeting, political representatives unanimously advocated for the government to expedite new regulatory powers and impose licensing and planning requirements on all exempt accommodations. The council is simultaneously conducting an internal review of its claim management processes.
Residents living in supported exempt accommodation who wish to share their experiences can contact [email protected].