Prime Minister Andy Burnham has personally committed to examining the controversial supported exempt accommodation sector in Birmingham, following a direct appeal from BirminghamLive. The pledge comes after the news outlet flagged the severe impact on city communities caused by landlords placing troubled and troubling strangers together in properties, particularly in poorer areas, in exchange for massively enhanced housing benefit payments.
Scale of the Problem in Birmingham
There are more than 32,000 people requiring 'support' through the system, many with no prior connections to Birmingham, living in more than 12,000 'exempt' properties. No other city in the UK has a comparable problem. Estimates suggest that some £400 million is now being paid in enhanced housing benefits each year in Birmingham on behalf of tenants in exempt properties, on the promise they will receive care and support to help them move on.
The money, paid by the Department for Work and Pensions, goes to registered non-profit providers but is then, in many cases, filtered out into private hands and the pockets of landlords and managing agents. The support given by some providers is sparse, leaving vulnerable tenants to fend for themselves.
Community Impact and Safety Concerns
As a result, some communities report a massive upturn in anti-social behaviour and criminality, while emergency services are stretched due to welfare concerns, violent altercations and 999 callouts. The sector has grown hugely in Birmingham over the past seven years, and the city is now the national hotspot for this type of housing.
MPs, councillors and campaigners in Birmingham, backed by BirminghamLive, have spent more than seven years fighting for stronger enforcement to hold non-compliant providers and rogue companies to account and crack down on those exploiting the system and profiting from it.
Burnham's Commitment and Political Action
BirminghamLive urged Mr Burnham to look more closely at the sector and see what more could be done. Promised regulations are due to come in next year but have already been condemned as 'weak'. In response, he made the commitment to look into it, telling the outlet he had already spoken with Home Secretary Shabana Mahmood, MP for Birmingham Ladywood, who has repeatedly raised her concerns about the sector's impact on city neighbourhoods.
When asked to look to see what more could be done, Burnham said: "I will give you that commitment. We want to ensure communities feel secure."
Regulatory Failures and Ongoing Campaign
Home Secretary Shabana Mahmood has previously sharply criticised non-compliant providers operating in the city, among them Reliance Social Housing, the biggest provider, accusing them of failing tenants and draining public housing benefit funds. She has also partnered with fellow MPs and city leaders to back investigations that have exposed how family homes are being turned into this type of HMO, or house of multiple occupation, at a rapid rate, with very limited planning or licensing requirements.
The previous Conservative Government pledged in 2023 to introduce a new regulatory framework, tougher rules and more rigorous oversight of the broken system, including licensing. However, a national consultation has already led to the promised changes being watered down, with any updates still months away. Affected communities have yet to see any change.
