Rogue landlords who exploit the supported housing system at the expense of vulnerable residents could be banned from operating or fined up to £30,000 as enforcement is stepped up across the country.

A statement from the Department of Levelling Up, Housing and Communities says that a £20m fund will support councils to crack down on landlords who profit through benefit claims but fail to support their vulnerable residents.

This is aimed mostly at large-scale landlords owning substantial and multiple HMOs specifically providing accommodation for people requiring care, support, or supervision as a result of homelessness, mental health issues or domestic abuse.

Poor performing landlords will need to improve and provide better accommodation and support or face enforcement action, including penalty charge notices of up to £30,000, prohibition orders on the most dangerous properties or even prosecution.

The funding will enable councils to step up inspection of accommodation standards and provide enhanced scrutiny of Housing Benefit claims to ensure they are reasonable. It will also improve local enforcement of the quality of accommodation and support to residents including supervision, advice, or help with life skills, to help tenants live independently in the community.

Housing Secretary Michael Gove says: “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 announcement comes ahead of the second reading of Bob Blackman’s Private Members Bill on November 18 which seeks to address poor-quality supported housing.

The Supported Housing Improvement Programme fund follows pilots in Birmingham, Blackburn, Darwen, Blackpool and Hull councils which helped them carry out over 1,000 property inspections of supported housing.