Commenting on the news that Prospect Housing plans to close in summer 2021, Shabana Mahmood MP said:

“The writing was on the wall for Prospect Housing after the Regulator deemed it ‘non compliant’ last year.

“The priority should now be to house the 1,600 vulnerable people at risk of homelessness when Prospect closes for good this summer – and I know that its directors are working with Birmingham City Council to ensure residents receive the quality homes and support they deserve.

“For company chiefs to warn that residents in exempt accommodation remain at risk of exploitation is telling. Even those companies working with the Regulator are finding it impossible to navigate a broken system ripe for abuse by shameless profiteers driving down standards of care.

“Dodgy providers doing much more damage exist right here in our city. Prospect certainly won’t be the last in the sector to close its doors.

“Exempt accommodation continues to fail to provide secure and safe homes. I have been campaigning tirelessly to ensure statutory reform is implemented immediately to raise standards in exempt accommodation. It cannot be right that housing providers only have to play by the rules if they want to. When we are dealing with people’s safety it must be protected in law.

“There are plenty of lessons to be learned from this closure. I’ll continue to work with colleagues to step up our calls for real change to overhaul the exempt sector and make it fit for purpose.”