The House Article | Charity housing is hindered by local government policy

Stylemans Almshouses, Bexley, Kent (Mark Summerfield/Alamy)

4 min read24 min

In the case of charity housing, it’s often local councils who are the powerbrokers for the sector, as they decide local budgets and funding priorities. This power is most significantly used through Selective Licensing, a regulatory tool impacting the private rented sector by requiring landlords to meet specific conditions and pay significant levies.

This legislation is vital as councils use these schemes to address issues such as poor living conditions, anti-social behaviour and housing inequality, which often disproportionately affect vulnerable populations.

As CEO of The Almshouse Association, the body representing 1,600 independent almshouse charities across the UK, I know that there is tension between the charity housing sector and government when it comes to this legislation.

Almshouses have been offering affordable housing to the community for over a thousand years  but are often overlooked or misunderstood by local councils. Almshouses are often mistakenly classified as part of the private rented sector and included in the Selective Licensing programme – overlooking a crucial distinction: unlike private landlords, almshouse charities are already subject to robust oversight by the Charity Commission and supply a beneficial service to the community.

Almshouses operate under a clear set of Standards of Almshouse Management, which ensure that properties are properly maintained, responsibly managed, and used in line with the charity’s purpose.

In addition, our member charities already operate on extremely tight financial margins. The cost of additional charges, such as selective licensing, is not merely a minor administrative burden but a significant financial strain – amounting to tens of thousands of pounds, in some cases.

This is money that could otherwise be used to maintain or expand properties for those in most need, but is instead diverted into these regulatory costs.

But in certain areas, councils have chosen to waive licensing fees for charitable providers – acknowledging their social value and limited resources.

However more still needs to be done. The underlying legislation does not allow for a straightforward exemption, meaning that charity housing still faces these additional fees, even if – as in a few cases – the cost is absorbed by the council rather than the charity. This creates administrative complexity without addressing the root issue.

Therefore, it’s now paramount for local government across the country to exempt non-profit housing charities – recognising their distinct role and alleviating the unnecessary financial pressure. The number of such properties is relatively small, meaning the impact on licensing revenues would be minimal. At the same time, councils would retain the ability to intervene where necessary. Existing powers already allow local authorities to inspect properties and address substandard conditions, ensuring exemptions do not come at the expense of tenant safety.

I’ve heard arguments that any exemptions would risk creating blind spots, particularly for those local authorities facing a significant housing crisis. However this underestimates both the accountability mechanisms already in place and the practical realities of selective licensing.

Treating charitable housing providers as indistinguishable from private landlords is counterproductive

Designation areas are typically drawn based on broad geographic data, making it difficult to carve out exceptions at the level of individual properties. Moreover, councils themselves often lack comprehensive information about all housing providers within their boundaries, further complicating enforcement.

Treating charitable housing providers as indistinguishable from private landlords is counterproductive. Almshouse charities are part of the solution – not the problem that selective licensing is designed to solve. Burdening our members with disproportionate costs risks weakening a sector that plays a vital role in supporting vulnerable communities.

If policymakers are serious about improving housing outcomes, regulation must be targeted, proportionate, and informed by the realities on the ground. Charity housing deserves a framework that reflects its unique contribution and is one that supports local authorities and councils’ ability to serve those who need it most. 

Nick Phillips is CEO of The Almshouse Association