Knowledge hub · Starting a service
How to Start a Supported Living Service in 2026
A step-by-step guide for England: when you need CQC registration, the documents CQC now rejects applications without, housing models and the new rules on tenancies and licensing, what councils pay and how to win your first referrals. Checked against the sources on 19 October 2026.
- Provisional average council fee per hour for supported living, 2025/26
- £22.95
- Date CQC began rejecting incomplete applications at receipt
- 9 Feb 2026
- Autistic people and people with a learning disability in hospital, Sept 2026
- 2,115
- Consultation on supported housing licensing closes
- 10 Dec 2026
By the Care Sync Experts registration team, with a former CQC Senior Inspector Manager with more than 20 years in regulation. Last checked .
How Do You Start a Supported Living Service?
Choose who you will support and check that your local council and NHS need it. Set up a company, appoint an experienced registered manager and agree a housing model that keeps the tenancy separate from the care. If you will provide personal care, apply to CQC for that regulated activity with every required document, including evidence of legal occupancy. Then recruit, join council frameworks and dynamic markets, and take your first referrals.
This guide covers adult supported living in England. Wales, Scotland and Northern Ireland have their own regulators, and services for 16- and 17-year-olds follow a separate Ofsted route. It is general information, not legal advice.
At a Glance: Supported Living in England, 2026
| What It Is | Care or support for adults who live in their own home, with the housing and the care arranged separately |
|---|---|
| Regulator in England | CQC, but only if you provide personal care. Housing-related support alone is not a regulated activity |
| What You Register For | The regulated activity of personal care, not accommodation |
| Who Pays for Care | Usually the council or the NHS, through a personal budget, direct payment or contract |
| Who Pays the Rent | The tenant, often through Housing Benefit, which still covers specified accommodation that meets DWP's landlord and support conditions |
| What Councils Pay | A provisional average of £22.95 an hour in 2025/26; the 2026/27 rates in our table run from £20.68 to £29.67 (Oxfordshire's and Bury's are maximum rates) |
| Before You Apply to CQC | Since 9 February 2026, incomplete applications are rejected at receipt |
| Ages 16 and 17 | Supported accommodation for looked-after children and care leavers is registered with Ofsted, and is unlikely to suit a child who needs personal care |
Source: Health and Social Care Act 2008 (Regulated Activities) Regulations 2014; CQC registration guidance; DHSC, Market Sustainability and Improvement Fund; councils' 2026/27 rate schedules; Ofsted. Full list under Sources.
The basics
What Is Supported Living?
Support can range from a few hours a week to 24-hour care, including sleep-ins and waking nights. It covers personal care where needed, and help with cooking, money, health appointments, work, relationships and getting out into the community.
Supported Living vs Residential Care
| Feature | Supported Living | Residential Care Home |
|---|---|---|
| Where People Live | Their own home: a flat, a house or a room in a shared house | A care home run by the provider |
| Legal Right to Live There | A tenancy or licence, separate from the care agreement | A single contract for accommodation and care |
| Changing Care Provider | The person can change provider and stay in their home | Moving provider usually means moving home |
| What CQC Registers | The care provider, for personal care | The provider, for accommodation for persons who require nursing or personal care, at the home |
| How It Is Paid For | Rent and living costs paid by the tenant; care funded separately | One weekly fee covering accommodation and care |
| Deprivation of Liberty | Authorised by the Court of Protection where needed | Authorised through DoLS by the council |
Source: CQC, Housing with care guidance; GOV.UK, deprivation of liberty orders; Regulated Activities Regulations 2014, schedule 1.
Regulation
Do You Need CQC Registration for Supported Living?
What Counts as Personal Care
Physical help with eating or drinking, toileting, washing or bathing, dressing, oral care, or care of the skin, hair and nails. It also includes prompting together with supervision with any of these, where the person cannot make the decision to do it for themselves without that prompting and supervision.
So prompting and supervising someone to shower can be personal care if they could not make the decision to do it without that prompting and supervision.
Source: Regulated Activities Regulations 2014, regulation 2.
Who Registers What
- The care provider registers for personal care, with a registered manager for that activity
- The landlord does not register with CQC for the housing
- Housing-related support only: no CQC registration, but supported housing licensing is on its way
- 16- and 17-year-olds: Ofsted supported accommodation, which is unlikely to suit a child who needs personal care
- Wales: Care Inspectorate Wales. Scotland: the Care Inspectorate. Northern Ireland: RQIA
Supported Living or a Care Home by Another Name?
If housing and care are really one package, CQC may treat the service as a care home, which needs registration for accommodation with personal care. CQC looks at the whole picture, but these are the main signs.
Signs It Is Really a Care Home
- The care provider and the landlord are the same legal entity, with no clear separation between housing and care
- Housing and care are sold as one package with no real separation
- The person cannot choose a different provider for their personal care
- Accepting care from the landlord is a condition of getting the home
- People do not hold genuine, valid occupancy agreements
Signs of Genuine Separation
- Separate contracts for the accommodation and for the personal care
- The person can access every part of their home except co-tenants' private rooms
- The person can choose and change their care provider without losing their home
Source: CQC, Housing with care guidance, sections 7 and 8; CQC, personal care.
Supporting Autistic People or People with a Learning Disability?
CQC's statutory guidance on services for autistic people and people with a learning disability applies to any service that provides, or intends to provide, regulated care to these groups. It expects services to protect dignity and privacy, deliver person-centred care and avoid new campus or congregate settings. Specialist services for these groups must also send an extra form and further documents, including positive behaviour support and restraint policies.
Source: CQC, services for autistic people and people with a learning disability (updated 5 August 2026); supported living extra documents; restraint policy.
Step by step
How to Start a Supported Living Service in 10 Steps
- 1
Choose Who You Will Support
Pick one group to start, such as adults with a learning disability, autistic adults or people with mental health needs, and the level of need you can safely meet.
- 2
Check Local Demand
Read your council's market position statement, talk to commissioners and find out how they buy supported living now: a framework, an open framework, a dynamic market or spot purchase.
- 3
Set Up the Company
Register a limited company with Companies House (£100 online), set up PAYE with HMRC and pay the ICO data protection fee (£52 a year for most small organisations).
- 4
Appoint Your Key People
A nominated individual who is a director, manager or secretary, and a registered manager with the qualifications, skills and experience for this service.
Registered manager requirements - 5
Agree the Housing Model
Decide who owns and lets the homes, and make sure tenancies are genuinely separate from the care. CQC asks for evidence of legal occupancy.
- 6
Write Your Policies and Plans
Statement of purpose, business plan and financial forecast, service user guide, staff training plan and every policy CQC lists for your service.
Supported living policies - 7
Apply to CQC for Personal Care
Send the complete application with the additional form for personal care providers and the supported living documents. Missing items mean rejection.
- 8
Recruit and Prepare Staff
Safer recruitment, enhanced DBS checks, induction and training matched to the people you will support. Plan sleep-ins and waking nights.
- 9
Join Council and NHS Routes
Register on the councils' portals, join open frameworks and dynamic markets when they open, and introduce your service to commissioners and social workers.
How council contracts work - 10
Take Your First Referral
Assess each person, agree their support plan with them and their family, and keep the tenancy and care agreements separate from day one.
Source: CQC, register as a provider (updated 25 August 2026); Companies House fees; ICO, data protection fee; regulation 6 and regulation 7 of the 2014 Regulations.
CQC application
The Documents CQC Needs for Supported Living
Every provider sends
Core Documents
- Statement of purpose
- Complaints policy
- Consent policy
- Equality, diversity and human rights policy
- Governance and quality assurance policies
- Infection prevention and control policy
- Medicines management policy
- Recruitment policy
- Safeguarding policy
- Public and employer's liability insurance quote or certificate
Supported living also sends
Extra Documents
- Business plan and financial forecast
- Evidence of legal occupancy
- Service user guide
- Staff training plan
- The additional form for personal care providers
Specialist services for autistic people and people with a learning disability also send a further form and documents, including positive behaviour support and restraint policies.
Have ready, do not send
Kept for Assessment
- Duty of candour policy
- Freedom to speak up or whistleblowing policy
- Person-centred care planning policies
- Reportable incidents policy
- Risk management policy and list of risk assessments
- Sample care contract and sample care plan
- Staffing structure and rotas
Source: CQC, documents everyone must send; supported living services; positive behaviour support policy; CQC bulletin, 3 February 2026; applying as a new provider.
Label Every Document
CQC asks that each document shows your organisation's name, the person responsible, the date it was written and its review date.
Allow for DBS Checks
CQC says the DBS check for your main contact can usually take up to 60 days. The nominated individual needs an enhanced DBS certificate.
Urgent Applications
CQC may prioritise an application critical to local capacity if a senior NHS trust or council leader, or an ICB commissioner, sends a formal signed request. Financial hardship alone is not accepted.
Source: CQC, how to prepare your documents; register as a provider; urgent registration applications.
Our CQC registration package prepares every document and checks the application before it goes in, for a fixed £4,000 + VAT.
Property
Supported Living Property: Housing Models That Work
Do not buy or lease a property before you know who will live there and that a commissioner will fund their care. The home must suit the people, not the other way round.
| Model | How It Works | Watch Out For |
|---|---|---|
| Housing Association | A housing association owns or leases the homes and grants the tenancies. You provide the care under a separate agreement. | The clearest separation; the rent may qualify as specified accommodation if the landlord is not-for-profit and the support conditions are met |
| Private Landlord Leasing to a Housing Provider | An investor leases the property, often for 10 years or more, to a housing provider that lets it to tenants. You provide the care. | The Regulator of Social Housing found weak governance and risk management among lease-based landlords, and a number became financially distressed or insolvent |
| Tenant Renting Privately | The person rents from a private landlord in their own right, and you provide care to them at home. | Help with rent (Universal Credit for working-age tenants) is limited to the Local Housing Allowance; private tenancy rules apply |
| Tenant or Family Owns the Home | The person, or a family trust, owns the home, sometimes through shared ownership, and chooses you as care provider. | Strong security for the person; the provider has no property risk |
| Provider-Linked Company Owns the Home | A company connected to the care provider owns the property and lets it. CQC looks closely at whether the person has a real choice of care provider. | Highest risk of being treated as a care home if separation is not genuine |
Source: Regulator of Social Housing, lease-based supported housing (10 April 2025); CQC, Housing with care guidance.
How the Rent Is Paid
Where the home counts as specified accommodation, rent is paid through Housing Benefit, not Universal Credit. From 1 July 2026 working-age Housing Benefit was abolished for people outside temporary or specified accommodation, so supported housing that qualifies stays on Housing Benefit.
For exempt accommodation the landlord must be a housing association, registered charity, voluntary organisation or non-metropolitan county council, and it, or someone on its behalf, must provide more than minimal care, support or supervision. Care the council or NHS commissions from you does not count as provided on the landlord's behalf.
Source: DWP, Housing Benefit guidance for supported housing claims (updated 1 April 2026); DWP circular A6/2026.
Safety and Licensing of the Building
- Mandatory HMO licensing applies where five or more people from two or more households share a home
- Buildings managed by a non-profit registered provider, and social housing managed by a for-profit registered provider, are not HMOs under the Housing Act 2004; other private landlords get no exemption
- The Fire Safety Order covers areas used in common by people in more than one dwelling, such as shared stairs in flats and most HMOs, and any staff office or sleep-in room, so these need a fire risk assessment. Check with your fire and rescue service for a house shared as one household
- Check planning use, accessibility and adaptations against the needs of the people who will live there
Source: HMO (Prescribed Description) Order 2018; Housing Act 2004, schedule 14; Fire Safety Order 2005, articles 2 and 6; NFCC, specialised housing guidance.
What changed in 2026
New Rules for Supported Housing in 2026 and 2027
In force and coming
Renters' Rights Act 2025
- Since 1 May 2026, new and existing private assured tenancies are periodic, and section 21 no-fault evictions have ended
- Assured tenancies of social housing from private registered providers, including specialised supported housing, move to the new rules from October 2027
- New possession grounds cover supported accommodation, including a discretionary ground where a tenant does not engage with support
- Do not use assured shorthold tenancy templates for new private tenancies
Source: SI 2026/421; MHCLG, social housing (10 April 2026); grounds for possession guidance.
Consultation closes 10 December 2026
Supported Housing Licensing
- Draft regulations under the Supported Housing (Regulatory Oversight) Act 2023 were published on 15 October 2026
- Under the draft regulations, anyone controlling or managing supported housing (broadly, specified accommodation) in a designated district would need a licence, lasting five years, unless the council grants an exemption
- Licence holders would have to meet the National Supported Housing Standards (council-commissioned services are commissioned in line with them), and any personal care must come from a registered care provider
- Fines of up to £7,000 alongside an improvement notice, or up to £40,000 for not complying with one
- Councils get six months to set up schemes, then a three-month transition; no start date has been set
Mental capacity
Tenancies, Mental Capacity and Deprivation of Liberty
Before moving in
Signing the Tenancy
If the person lacks capacity to sign, someone needs authority to sign for them. The Court of Protection can make a single decision, which the Mental Capacity Act prefers to appointing a deputy. An existing deputy applies to the court for a one-off decision not covered by their order.
Outside care homes
Deprivation of Liberty
DoLS only covers adults in hospitals and care homes. In supported living, a deprivation of liberty must be authorised by the Court of Protection, usually on an application by the council or NHS body responsible for arranging the care. The application fee is £432.
Changed 2 June 2026
The Supreme Court Ruling
The Supreme Court overruled the Cheshire West acid test. Whether care amounts to a deprivation of liberty now depends on several factors, and a person can give valid consent in some cases. Where there is serious doubt, for example about objection or consent, apply to the court and take legal advice.
Source: Mental Capacity Act 2005, section 16; GOV.UK, one-off decisions; deprivation of liberty orders (updated 13 July 2026); DHSC, changes to the definition of deprivation of liberty.
Read our guides to the Mental Capacity Act and deprivation of liberty.
Money
How Much Does It Cost to Start a Supported Living Business?
| Cost | Amount | Notes |
|---|---|---|
| Company Incorporation | £100 online | Companies House, from 1 February 2026 |
| Confirmation Statement | £50 a year online | Companies House |
| ICO Data Protection Fee | £52 a year (tier 1), £78 (tier 2) | £5 less by direct debit |
| Enhanced DBS Check | £41 each | From 5 October 2026; the Update Service is £15 a year |
| CQC Application | No application fee | An annual CQC fee applies once you are registered |
| Insurance, Policies and Premises | Get written quotes | Public and employer's liability, professional indemnity, office lease |
| Running Costs Before Income | Your largest cost | Manager and staff salaries, recruitment and training while you wait to register and take referrals |
Source: Companies House fees; ICO; DBS fees from 5 October 2026; GOV.UK, no CQC application fee.
How Much Can You Charge? Council Rates for 2026/27
Councils set the rate for the care they fund. The national average for supported living was £22.95 an hour in 2025/26 (provisional), up 5.6% on the year before. Rent is paid separately and is not part of these rates.
| Council | Hourly Rate | Nights |
|---|---|---|
| Essex | £23.40 non-complex; £25.96 complex | Night sleep £12.68 an hour |
| Nottinghamshire | Under 65: £24.00 standard; £26.36 enhanced | Sleep-in £13.83 (unit not stated), frozen for 2026/27 |
| Bury | Maximum £23.73 (Real Living Wage); £22.97 standard | Sleep-in £15.01 or £14.27 an hour |
| North Tyneside | £22.07 non-complex; £22.88 complex | Overnight sleep-in £136.62 |
| Herefordshire | £20.68 lower; £24.08 high | Sleep-in £151.00 a night |
| Oxfordshire | Ceilings from £25.05 to £29.67 | Sleep-in £84.97 a night |
| Birmingham | £22.07 (2023 framework, indicative) | No sleep-in rate published |
Source: Each council's published 2026/27 rates, linked from its name; DHSC, MSIF provider fee reporting 2025 to 2026.
What Your Rate Has to Cover
- Support worker pay at or above the National Living Wage, £12.71 an hour from April 2026
- Employer National Insurance at 15% above £5,000 a year, less the £10,500 Employment Allowance if you qualify
- Holiday pay, pension, sickness and training cover
- Management, on-call, quality checks, insurance and office costs
- A margin to absorb empty hours and late payments
Source: GOV.UK, National Living Wage; HMRC, rates and thresholds 2026 to 2027.
Is a Supported Living Business Profitable?
It can be, but margins are thin and nothing is guaranteed. Profit depends on your hourly rate, how many hours you fill and how well you control agency staff and empty hours. In the ADASS Spring Survey 2026, 66% of responding directors said local care providers had closed, ceased trading or handed back contracts in the previous six months. Be wary of any scheme that promises a guaranteed return.
Source: ADASS Spring Survey 2026.
Your team
Staffing a Supported Living Service in 2026
Sleep-Ins and Pay
The Supreme Court ruled in 2021 that sleep-in workers are only entitled to the minimum wage for time they are awake for the purpose of working. Many councils pay sleep-ins as a flat rate per night.
Source: Royal Mencap Society v Tomlinson-Blake [2021] UKSC 8.
Overseas Recruitment
New overseas recruitment of care workers closed on 22 July 2025. Applications from care workers already in the UK can continue until 22 July 2028, subject to conditions, so plan to recruit locally.
Vacancies and Turnover
Skills for Care put the vacancy rate in independent sector domiciliary care at 9.1% in 2025/26, down from 10.0%. Staff turnover in the independent sector was 23.6%.
Winning work
How to Get Referrals and Contracts for Supported Living
Register on each council's e-tendering portal, set up alerts on Find a Tender, and make sure your Central Digital Platform record is complete. Introduce your service to commissioners, social workers and hospital discharge teams with a short offer that says who you support, where, and how quickly you can start.
Real Supported Living Tenders, 2025 to 2026
| Buyer | What It Bought | How It Chose | Worth Knowing |
|---|---|---|---|
| Dudley Council, 2026 | Supported living open framework, light touch. £304 million excluding VAT, April 2027 to April 2030, extendable to 2035, 2 lots | Quality 100% | No cap on the number of suppliers |
| North Northamptonshire Council with the ICB, 2025 | Supported living for working-age adults, open framework. £303 million excluding VAT, April 2026 to March 2030 plus 1 + 1 years | Quality 100% | Six lots across learning disability, mental health and autism, at standard and enhanced levels |
| Sheffield City Council, 2026 | Enhanced care open framework. £143 million excluding VAT, with £75 million for enhanced supported living | Quality 100% | Some lots require CQC registration; the severe multiple disadvantage lot says providers do not have to be registered |
| Medway Council, 2025 | Supported living dynamic purchasing system. £74.8 million including VAT, to January 2027, 3 lots by level of need | Quality 65%, price 35% | Providers in the higher needs lot must be CQC registered |
| Reading Borough Council, 2025 | Supported living framework. £120 million excluding VAT, April 2026 to March 2031, plus up to 5 years | Quality, price, social value and carbon (weightings in the tender documents) | Community support lot capped at 5 suppliers; other lots uncapped |
Source: Find a Tender notices, linked from each buyer's name, checked 19 October 2026. Notices are examples and may have closed.
See Open Supported Living Tenders
Live council and NHS opportunities, with deadlines, values and lots.
New to tendering? Read how council and NHS contracts work.
Avoid these
Common Mistakes When Starting a Supported Living Business
- Mistake 1
Buying Property First
Committing to a house before you know who will live there and who will fund their care leaves you paying for an empty home.
- Mistake 2
Housing and Care as One Package
If people cannot choose another care provider or do not hold genuine tenancies, CQC may treat the service as a care home.
- Mistake 3
Applying Before You Are Ready
Since February 2026 an incomplete application is rejected, not paused. CQC asks you to apply only when everything is in place.
- Mistake 4
Trusting Guaranteed Returns
The Regulator of Social Housing found weak governance and risk management among lease-based supported housing landlords, and a number became insolvent.
- Mistake 5
Pricing Below Cost
A rate that does not cover the National Living Wage, National Insurance, sleep-ins and management leaves no margin for empty hours.
- Mistake 6
Waiting for One Framework
Frameworks open and close on their own timetable. Map every route in your area, including spot purchase, dynamic markets and the NHS.
Source: Regulator of Social Housing, focus report; CQC bulletin, 3 February 2026; CQC, Housing with care guidance.
Case studies
Supported Living Tenders We Have Helped Providers Bid For
Tender writing
Living Plus Care Services
Supported living wins include Milton Keynes Council's supported living open framework and Southend-on-Sea's approved provider list for community-based services, in both lots.
Won 6 of 7 tendersRead the Living Plus Care Services case studyTender writing
Morah Services
Won a place on Essex County Council's 2025 supported living framework and was shortlisted for Essex Live at Home 2025. A Buckinghamshire supported living block contract bid was unsuccessful.
1 won, 1 shortlisted, 1 lostRead the Morah Services case studyTender writing
Care and Grace
Won a place on Somerset's specialist adults support dynamic purchasing system and Norfolk County Council's adult life opportunities framework.
Tender writing
Light Health Care
Lost a Kirklees Council supported living bid because the required experience was not fully shown, while winning in Barnsley and Norfolk.
Won 2 of 3 tendersRead the Light Health Care case study
Starting out
We prepare your CQC application, policies and first tenders, built around the people you will support.
Watch: Starting and Running a Supported Living Service
Three videos from our team on getting your CQC application right, why new services fail and registering as a supplier for council and NHS work.
New CQC Rules February 2026: No Second Chances on Your Application
Why CQC now rejects incomplete applications at receipt from 9 February 2026, and how supported living applicants can get every document right first time.
Supported Living Businesses Fail for These Exact Reasons
The lessons new supported living providers learn the hard way: local demand, CQC compliance, cash flow and relationships with commissioners.
Government Contracts Are Impossible Without CDP Registration
How to register on the Central Digital Platform and get the supplier details councils and NHS buyers ask for under the Procurement Act 2023.
How Care Sync Experts Can Help
We prepare your CQC application for personal care, write supported living policies around the people you will support, check that your housing arrangement shows genuine separation, and help you bid for frameworks. 94% of the applications we support are approved first time, across more than 1,200 providers in 10 years.
- CQC Registration Package: fixed £4,000 + VAT
- Supported Living Policies
- Tender Writing
Sources
Every rule, rate and example in this guide comes from these pages, checked on 19 October 2026. Council rates and tender notices are linked where they appear. This guide is general information, not legal advice.
Law
- Regulated Activities Regulations 2014, regulation 2 (personal care)
- Regulated Activities Regulations 2014, schedule 1
- Regulation 6 (nominated individual)
- Regulation 7 (registered manager)
- Mental Capacity Act 2005, section 16
- HMO (Prescribed Description) (England) Order 2018
- Housing Act 2004, schedule 14
- Regulatory Reform (Fire Safety) Order 2005, article 2
- Regulatory Reform (Fire Safety) Order 2005, article 6
- Renters' Rights Act 2025 commencement, SI 2026/421
- Royal Mencap Society v Tomlinson-Blake [2021] UKSC 8
CQC
- Register as a provider (updated 25 August 2026)
- Applying as a new provider (updated 25 March 2026)
- Documents everyone must send
- Extra documents: supported living services
- How to prepare your documents
- Positive behaviour support policy
- Bulletin: rejecting incomplete applications (3 February 2026)
- Urgent registration applications
- Personal care
- Housing with care guidance
- Services for autistic people and people with a learning disability
Housing and Benefits
- DWP, Housing Benefit guidance for supported housing claims
- DWP circular A6/2026, closure of working-age Housing Benefit
- MHCLG, supported housing licensing: draft regulations
- MHCLG, Renters' Rights Act and social housing
- Grounds for possession guidance
- Regulator of Social Housing, lease-based supported housing
- GOV.UK, deprivation of liberty orders
- DHSC, changes to the definition of deprivation of liberty
- Ofsted, supported accommodation registration policy
Money, Market and Workforce
- DHSC, MSIF provider fee reporting 2025 to 2026
- ADASS Spring Survey 2026
- NHS England, learning disability services statistics (October 2026)
- Skills for Care, size and structure 2026
- GOV.UK, no application fee and annual CQC fee
- Companies House fees
- ICO data protection fee
- DBS fees from 5 October 2026
- GOV.UK, National Living Wage
- HMRC, rates and thresholds 2026 to 2027
- Home Office, HC 997 explanatory memorandum
- Find a Tender
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Frequently asked questions
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Supported Living Tenders and Bid Writing
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