One in 10 homes for vulnerable or disabled people face closure, leaving tens of thousands at risk of homelessness or being stuck in hospital.
More than a decade of funding cuts has pushed specialist homes to the brink, with 50,000 at risk of closing their doors without an urgent cash injection, a survey by the National Housing Federation (NHF) found.
Supported housing helps those with a range of complex needs, including young people leaving care, survivors of domestic abuse, older people and veterans, people with mental health needs and people with learning disabilities.
Without these homes, an additional 71,000 people could be homeless or at risk of homelessness.
Analysis found it would create the need for 14,000 more inpatient psychiatric places, 2,500 residential care places and 2,000 more prison places.
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Shortages of supported housing last year resulted in 109,029 days of delayed discharge from mental health hospitals, costing the NHS an estimated £71million.
NHF chief Kate Henderson said: “For years, providers have had no choice but to reduce services because of cuts to funding and increasing financial pressures.
"Thousands of supported homes have been lost over the last few years alone and these residents are having their quality of life and opportunities taken away, as well as being at risk of homelessness.
“The government must urgently come up with a plan to identify long-term, sustainable funding, alongside emergency funding for supported housing, to prevent more schemes having to close their doors.”
The number of supported homes across England has fallen below the level in 2007, with a 325,000 shortfall of homes, the NHF said.
Over half (56%) of the 126 providers surveyed warned they had schemes at imminent risk of closing without an urgent cash injection,
A fifth (22%) said they may have to close all their services entirely, without emergency and long-term funding.
The National Audit Office estimates that funding for supported housing was cut by 75% between 2010 and 2020, leaving providers struggling to support the same services with £1bn less every year.
Meanwhile providers face pressure from inflation and rising energy bills, as well as building safety repairs and staffing costs.
Stephen Battersby, 59, who has bipolar disorder and some learning disabilities, was forced to move into a secure unit for nine months following the deaths of his parents.
But moving into Nicholas Court, a supported housing scheme run by Advance in London, in 2019 has allowed him to build a life for himself.
Maria Mahmood, who has been working with him for four years, said: “When he first came, Stephen was very withdrawn and didn’t leave his bedroom.
"He also didn’t have the knowledge and understanding of why it’s important to clean and maintain your own home, socialise with others.
"Now, he has the confidence to take part in activities, prepare meals with staff and even present his artwork in public – something Stephen would have never even considered when he first came to us."
Julie Layton, chief executive of Advance, said: "A good quality home for everybody is a basic fundamental thing. People can grow and thrive if they have safe and secure housing.
She added: "It just feels like a tragedy to be in this position of the most vulnerable people in society at risk of losing their homes and support because there isn't sustainable funding in place."
A Ministry of Housing, Communities and Local Government spokesperson said: “Everyone deserves to live in a safe, secure home, and we are taking decisive action to make this a reality with supported housing playing a vital role in our communities.
"Through our Plan for Change we are delivering the biggest boost to social and affordable housing in a generation, with a £39 billion investment, work with local authorities to enable them to better understand their supported housing needs and ensuring providers meet the national standards set out by the Supported Housing Act."
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