Residents in Birmingham have lodged over 6,000 complaints concerning crime, poor living conditions, and inadequate support within the city’s burgeoning ‘supported accommodation’ sector. This troubling situation stems largely from the ‘exempt’ housing sector, where family homes are converted into shared residences for vulnerable individuals, funded by substantial housing benefits.
A recent report reveals that while the city council has made strides—closing or refurbishing 99 properties, evicting or arresting dozens of problematic tenants, and reclaiming £8.7 million in housing benefits from unscrupulous landlords—these efforts only scratch the surface of a deep-rooted problem. The findings will be reviewed at the council’s homes overview and scrutiny committee on January 15.
Local activists and investigations by BirminghamLive echo concerns that the sector remains vulnerable to exploitation by criminal gangs, drug dealers, and profiteering landlords. Many neighborhoods have seen a dramatic shift as exempt accommodations now rival or exceed traditional family homes in certain streets. The sector commands around £300 million annually in housing benefit payments within the city.
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Councillor Roger Harmer of the Liberal Democrats condemned the situation as a “scandalous failure of governance” and called for urgent government action to regulate the sector more rigorously. Similarly, Labour councillor Jamie Scott described the situation as alarming, highlighting incidents involving violence and disruption while urging the implementation of agreed regulations, including unannounced inspections.
The Supported Housing Act, passed two years ago to grant councils enhanced oversight, remains unimplemented, with new controls unlikely to take effect before 2027. MP Bob Blackman, who championed the legislation, has voiced frustration over these delays, warning rogue landlords continue profiting unchecked.
Since the Act’s passage, Birmingham has seen 700 additional exempt properties open, housing over 5,400 new tenants—many with no local ties. The current total exceeds 10,800 registered exempt properties across the city, accommodating more than 32,000 unrelated individuals.
Exempt housing is concentrated in wards like Aston, North Edgbaston, and Stockland Green, with significant numbers in Perry Barr, Ladywood, Hall Green, and Moseley constituencies. Five major providers dominate this market, all flagged as “non-compliant” by the Regulator of Social Housing.
Exempt properties differ from general HMOs as they do not require licensing or DBS checks for support staff, even though residents often have complex needs. Support levels, legally required to be “more than minimal,” can be as low as one hour per week—a standard that some argue contributes to neglect.
While certain providers maintain high standards, the pervasive risk of exploitation remains. The council’s report emphasizes the imbalance created by exempt housing, reducing available family homes and concentrating vulnerable single people.
Birmingham’s council specialist team has investigated thousands of complaints: 2,599 related to crime and anti-social behavior, 2,009 to poor property conditions, and 1,451 to inadequate tenant support. Police collaboration has led to 82 arrests and 48 community protection orders; nearly a thousand evictions have been enforced, and one property closed.
Further, the council has performed over 4,300 property inspections, uncovering nearly 9,400 serious hazards—all addressed promptly. Social workers have conducted thousands of visits and support reviews, sometimes prompting enforcement measures.
Though lacking authority to close properties directly, the council has facilitated the “decommissioning” of problematic accommodations and is pursuing 26 planning enforcement actions against unauthorized uses. Efforts have also saved £8.7 million in overpaid housing benefits.
The report cautions that while new regulatory powers are needed, sudden large-scale changes could strain support services or push landlords into other problematic markets. Careful implementation, updated needs assessments, and adequate funding are critical to a smooth transition.
The mounting pressures and complexities of Birmingham’s exempt supported accommodation sector demand urgent and coordinated action to protect vulnerable residents and preserve community welfare.