Provision for Mental Health and Homeless Supported Housing Service
Overview
Summary, notice description and lot information
The London Borough of Hounslow has awarded a contract for the provision of mental health and homeless supported housing services, with specific focus on vulnerable adults with complex needs. The final award relates to Lot 2, which entails supporting homeless adults across 86 units in ten buildings, including a Short Stay Scheme for rapid access and assessment. This procurement process, conducted using an open procedure, has concluded in the award stage as of 2 December 2025.
The contract period is scheduled from 1 April 2026 to 31 March 2031, with potential extensions up to an additional three years based on performance. The award for Lot 2 amounts to £12,240,000, with St Mungo's identified as the supplier, marking a substantial opportunity for large-scale service delivery in health and social work services, specifically within the Hounslow area. This procurement offers substantial opportunities for organisations involved in health and social work, particularly those specialising in supported housing and community services.
With St Mungo's securing the contract, the involvement of large VCSE organisations emphasises the importance of social enterprise in this sector. Businesses with expertise in handling complex needs, substance use, and mental health support may find similar opportunities lucrative. The emphasis on independence and recovery-focused support opens avenues for providers with innovative solutions in these areas, aligning with objectives to improve client wellbeing and social integration.
Such contracts present growth prospects through long-term partnerships, especially for those adept at navigating the regulatory and service delivery landscapes in public authority settings.
The new homeless supported housing contract will be made up of 86 units across ten buildings: 75 units across nine buildings - supporting homeless adults with a range of needs, including mental health and substance use. 11 units in one building - Short Stay Scheme - accommodation providing assessment of needs and the most suitable offer of accommodation and short-stay rapid access. This award notice relates to Lot 2, at a total cost of PS1,530,000 per annum, and total budget of PS12,240,000.
The service will support adults with severe mental health problems who are referred by London Borough of Hounslow, offering 24-hour supported housing with flexible, recovery-focused support. The main role of the service is to provide supported move-on accommodation for individuals within the target group who are ready to take a first step down from a more intensively staffed setting. This will usually be from a community-based service, such as 24-hour supported living, but could also be hospital, provided an individual will be able to manage within the level of support provided by the service. In a smaller number of cases, appropriate individuals may be referred to the service as a step up from the wider supported accommodation pathway, mainstream housing or temporary accommodation. The service will promote recovery, wellbeing and independence and meet the following aims as detailed in the Core Specification: Maximise Independence Improve Mental and Emotional Wellbeing Enhance Quality of Life and Reduce Social Isolation Improve Physical Wellbeing Move on at the right time Prevent placement breakdown
The overall aim of the service is to support homeless adults including those with multiple and complex needs, to move towards independent living. The service will promote independence, wellbeing and recovery and meet the following aims as detailed in the Core Specification: * Maximise Independence * Improve Mental and Emotional Wellbeing * Enhance Quality of Life and Reduce Social Isolation * Improve Physical Wellbeing * Move on at the right time * Prevent placement breakdown Support will be person-centered and holistic, meeting the service user's outcomes through individual casework, therapies, and through support to access services and resources in the local community
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The contract period is five years.
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