Prime Minister Andy Burnham has personally committed to thoroughly investigating the impact of the controversial supported exempt accommodation sector in Birmingham.
During a visit to Wolverhampton, BirminghamLive highlighted to him the challenges faced by city communities when landlords place vulnerable and sometimes problematic individuals together in properties, mainly within deprived areas. This is done in exchange for significantly increased housing benefit payments.
Currently, more than 32,000 people needing support are housed in over 12,000 exempt properties across Birmingham, many of whom have no previous connection to the city. No other UK city experiences a comparable scale of this issue.
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We urged Mr Burnham to scrutinise the sector more closely and consider additional measures to address the problem. While new regulations are expected next year, they have already been criticised as insufficient.
In response, Mr Burnham pledged to look into the matter personally, confirming he had spoken with Home Secretary Shabana Mahmood, the MP for Birmingham Ladywood, who has long voiced concerns regarding the sector’s effects on local neighbourhoods.
He stated, “I will give you that commitment. We want to ensure communities feel secure.”
For over seven years, MPs, councillors, campaigners, and BirminghamLive have campaigned for stronger enforcement to hold non-compliant providers and rogue operators to account, cracking down on those exploiting the system and profiting unduly.
During this period, the sector has expanded considerably in Birmingham, making it the national hotspot for exempt accommodation.
It is estimated that approximately £400 million is paid annually in enhanced housing benefits within the city for tenants in exempt properties, under the expectation they receive adequate care and support to move forward.
These payments, managed by the Department for Work and Pensions, go to registered non-profit providers but are often diverted into private hands, benefiting landlords and managing agents. Support offered by some providers is minimal, leaving vulnerable tenants to cope alone.
Consequently, many communities have experienced a sharp rise in antisocial behaviour and crime, while emergency services face increased pressure due to welfare issues, violent incidents, and a higher volume of 999 calls.
Shabana Mahmood has been a vocal critic of non-compliant providers in the city, including Reliance Social Housing, the largest provider, accusing them of failing tenants and depleting public housing benefit funds.
She has collaborated with fellow MPs and local leaders to support investigations revealing how family homes are rapidly being converted into houses of multiple occupation (HMOs) with limited planning or licensing oversight.
The previous Conservative government promised in 2023 to implement a new regulatory framework, with tougher rules and enhanced oversight, including licensing reforms to address this broken system.
However, following a national consultation, the proposed changes have been diluted, with implementation still months away, and affected communities have yet to see tangible improvements.