Councils are being given access to a £20m government fund to tackle landlords who exploit the supported housing system at the expense of vulnerable residents.
The fund will be used to toughen up the inspection of failing landlords and ensure those who profit through benefit claims but fail to support their vulnerable residents are held to account.
Under the new system, poor performing landlords will need to improve and provide better accommodation or face penalty notices of up to £30,000 and banned from operating.
Housing secretary, Michael Gove, said: 'Time’s up for rogue landlords who take money from the taxpayer while exploiting vulnerable people.
'We are stepping in to help councils crack down on this appalling activity and I will be working closely with Bob Blackman MP on his Private Members’ Bill to deliver tough new laws to end this practice once and for all.'
The Supported Housing Improvement Programme funds ]follows successful pilots in Birmingham, Blackburn, Darwen, Blackpool and Hull councils which helped them carry out over 1,000 property inspections of supported housing backed by over £5m.
Cllr David Renard, LGA housing spokesperson, said: 'Councils do everything they can to tackle bad practice and are taking action where required to raise standards in the private rented sector.
'However, further funding and support is needed to raise standards in the private rented sector and councils could do more if they were given the right tools, such as removing the requirement for Secretary of State approval for larger selective licensing schemes.'
