How to Start a Supported Living Business in the UK: Guide

Starting a supported living business in the UK is one of the most meaningful and in-demand opportunities for new care providers. With an ageing population, increased focus on independence, and rising demand for community-based care, supported living services have become an essential part of the health and social care landscape.

If you want to become a part of this sector, knowing how to start a supported living business in the UK is the first step to success.

From understanding the legal requirements and securing the right funding to attracting clients and building a trusted reputation, careful planning and clear guidance can help you create a viable, long-term business that makes a difference in people’s lives.

Key takeaways

• Proper legal setup is essential
  Sole traders and partnerships carry significant personal liability, so registering a limited company is the safest and most credible option for starting a supported living business.
• Compliance and training are non-negotiable
  CQC registration, DBS checks, safeguarding training, MCA compliance, health and safety, fire risk assessments, and infection control are all essential to keeping residents safe and meeting regulatory expectations.
• Financial planning and grants can reduce startup barriers
  Understanding typical startup costs, ongoing operational expenses, and available funding helps you budget effectively. Grants and government support can significantly reduce financial risk and accelerate setup.
• Building trust and networks is key to client acquisition
  Most early referrals come from local authority commissioning teams, social workers, housing associations, and care brokers. Being visible on trusted directories and maintaining a strong online presence help new providers secure consistent placements.

About the supported living business

A supported living business provides accommodation and personalised support to people who need help to live independently.

Unlike a care home, supported living isn’t about providing 24/7 medical care. Instead, it focuses on providing assistance with autonomy, choice, and specific personal needs, whether that includes cooking, budgeting, personal care, or navigating daily life.

Supported living services serve groups such as:

• Adults with learning disabilities
• Adults with autism
• People with mental health needs
• Young adults leaving care
• Adults recovering from substance misuse
• People with physical disabilities
• Older adults who need targeted support but not residential care

This versatility gives you the freedom to tailor your services to the needs of your target clients.

Who can run a supported living business?

A supported living business is suitable for:

• Care professionals (support workers, registered managers, nurses) starting their own service
• Property investors who want to lease or manage supported units
• Entrepreneurs without care work experience who are looking for a scalable, high-impact business, as long as they are willing to hire qualified managers who have the necessary skills and background

No matter your background, the business can be adapted to your skills and growth ambitions.

The state of the market in the UK

Before you launch, it’s essential to understand the UK supported living landscape so you can position your business effectively.

The UK currently faces:

• High demand for supported housing, especially for individuals with learning disabilities and autism
• Ongoing pressure on local councils to reduce residential care placements
• Increasing preference for community-based supported options
• Growth in mental-health-related supported tenancies
• Shortages of high-quality providers in smaller towns and rural areas

The National Healthcare Service (NHS) England and local authorities continue to invest in step-down services and transitional housing, which all create opportunities for new providers.

How to start a supported living business in the UK: The legal setup

As you might imagine, supported living has a significant number of regulatory requirements because it involves housing and supporting vulnerable individuals.

There are three main types of business structures in the UK: sole trader, limited company, and partnership. However, supported living services must be structured professionally, and most local authorities only work with registered limited companies.

As far as partnerships go, while technically possible, it’s not a recommended structure in this case due to liability issues. In a partnership, both partners are personally liable for anything that goes wrong – including safeguarding issues, financial disputes, or legal claims.

Sole traders are rare in this sector and generally unsuitable due to the risk, scale, and strict compliance rules. This structure leaves you personally responsible for all risks, which can be significant in care-related services.

For credibility, liability protection, and contracting, a limited company (Ltd) is probably the best option.

Licences and legal compliance

Running a supported living business means you’ll need a range of licences, checks, insurance policies, and legal processes to keep clients safe, meet council expectations, and protect yourself. Here’s what you need to cover:

1. CQC registration

The Care Quality Commission (CQC) is the regulator for health and adult social care services in England. CQC registration shows that you meet national standards for safety, effectiveness, care, responsiveness, and leadership.

You must register with the CQC if your staff provide personal care, like helping clients with washing, dressing, toileting, or administering medication. If you only offer housing support (help with budgeting, shopping, community access) and don’t provide personal care, you usually don’t need to register.

2. DBS checks

A Disclosure and Barring Service (DBS) check shows whether a person has a criminal record or is barred from working with vulnerable adults. The enhanced DBS check is the most commonly required level in social care.

It’s a legal and ethical safeguard to reduce the risk of harm to vulnerable people. Every staff member who will work with clients (support workers, managers, volunteers who have client contact, and occasionally contractors) must complete a DBS check.

3. Safeguarding training and Mental Capacity Act compliance

This mandatory training teaches staff to spot abuse or neglect, report concerns, and protect clients from harm. Safeguarding is central to care work; you must be able to protect people and act quickly if something goes wrong.

4. Health and safety compliance

Health and safety compliance is a legal requirement for all businesses, and it’s particularly important in supported living. Proper compliance helps prevent accidents, reduces liability, and ensures a safe living environment:

• Fire safety: Conduct detailed fire risk assessments for shared homes, evaluating escape routes, smoke alarms, fire-fighting equipment, and evacuation drills.
• Safe handling of materials and equipment: Train staff to handle hazardous substances, implement cleaning schedules, and provide manual-handling guidance to prevent injury.
• Accident reporting and record keeping: Maintain clear records of incidents, and report serious accidents under RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) when required.
• Housing standards: Make properties safe, accessible, and suitable for supported living, including adaptations for independence and mobility.
• Local authority commissioning requirements: Follow council expectations for staffing levels, training, policies, and reporting. Complying with these requirements is essential to receive referrals and secure contracts.
• Medication protocols: Handle, store, and record medication safely to prevent errors and protect residents. Provide accredited training for staff, follow clear procedures, and maintain accurate MAR (Medication Administration Record) charts.
• Infection control procedures: Maintain hygiene, cleaning, and outbreak-prevention measures to minimise illness and service disruption. Develop an infection prevention and control (IPC) policy, and keep thorough cleaning and monitoring logs.

Following these practices also shows your professionalism and compliance with regulators and commissioning authorities.

Insurance regulations for supported living businesses in the UK

Key types of insurance your supported living business should consider include:

Financial planning

Starting a supported living business requires careful financial planning to make sure your service is sustainable and compliant from day one. Understanding the costs involved, both upfront and ongoing, helps you budget effectively, set realistic pricing, and prepare for regulatory requirements.

Typical startup costs

A supported living business can be started on a small or large scale. Typical initial costs include:

Typically, small setups may start with £5,000–£10,000, while larger or multi-property setups can reach £50,000.

Ongoing operational costs

Understanding your business's ongoing costs can help you plan cash flow, set appropriate pricing, and ensure long-term sustainability. Here’s an approximate breakdown of your monthly costs:

This ranges from £3,000–£15,000, depending on the number of properties and your staff model.

Government grants or support

The UK government and local authorities often offer grants, loans, or funding schemes to encourage the development of supported living and specialised housing. New providers can take advantage of these options to reduce startup costs:

• Social and Affordable Homes Programme (SAHP) 2026–2036: It provides major capital grants to build or repurpose homes for affordable, specialist, or supported housing.
• Disabled Facilities Grant (DFG): It provides local-authority-administered funding for home adaptations, such as ramps, accessible bathrooms, lifts, and wet rooms, making properties suitable for people with disabilities.
• Social Housing Innovation Fund (SHIF): The fund provides grants for innovative social-housing projects that improve tenant engagement, support services, or housing models, which is useful if your supported living service includes communal support or resident involvement.
• Other local and third-sector funding or charitable grants: Includes council, community, or charity-based funds aimed at supporting vulnerable adults, disability housing, or supported housing projects. These vary regionally and often complement larger national schemes.

Taking advantage of these grants can significantly reduce financial barriers and help new providers establish high-quality, sustainable services.

How to get your first clients

Most new supported-living providers gain their earliest referrals through professional networks, not public marketing. Key sources include:

• Local authority commissioning teams
• Social workers and adult social care teams
• Housing associations and supported-housing partners
• NHS hospital discharge teams
• Online care and housing directories
• Independent care brokers and placement officers

These groups are the gatekeepers for placements, so building strong, professional relationships with them is essential.

How to break into the market

To position yourself as a credible new provider:

• Introduce your business to local council commissioning teams and request inclusion on their provider lists.
• Register on supported-living directories used by brokers and social-care teams.
• Network with social workers, hospital discharge leads, and community teams.
• Create a well-designed Service Offer Pack outlining your model, property details, staff training, and referral process.

Another way to break in is to be where your clients are. These platforms can help professionals find and assess your business:

• CQC provider listings (if you deliver personal care)
• CarePlace (used by many councils for adult social care placements)
• Housing association supplier frameworks
• Local authority tender portals and procurement systems
• Supported living directories used by care brokers and families

Being visible on the right platforms increases your credibility and referral potential.

What about marketing?

Although supported living doesn’t rely on traditional public marketing, presenting yourself clearly and professionally can strengthen your reputation and help commissioners understand the quality of your service. Focus on:

• Local SEO – Set up a Google Business Profile with accurate services and photos.
• Social media (Instagram/Facebook) – Show property tours, community activities, support staff training, and success stories.
• Local flyers/brochures – Share with housing associations, charities, and community groups.
• Referral partnerships – Build relationships with disability charities, advocacy groups, and community organisations.
• A professional website – Clearly outline your service model, policies, property standards, and referral/assessment process.

Building strong relationships and maintaining a professional presence across these channels can help your business gain trust and secure consistent referrals.

Ready to start your business? Make it all easier with ANNA

Starting a supported living business comes with many moving parts – from registering your company to managing finances and staying compliant. ANNA can help streamline every step, giving you more time to focus on delivering high-quality care.

Here’s what ANNA can do:

• Register your company online – Quickly set up a limited company with same-day registration options.
• Open a UK business account – Manage all income and expenses in one place with a debit card and real-time balance tracking.
• Automate bookkeeping – Track invoices, receipts, and payments automatically to save time.
• Handle VAT and taxes effortlessly – Register for VAT and generate tax-ready reports.
• Set up payroll and staff payments – Pay employees securely and meet HMRC reporting requirements.
• Issue and track invoices – Create professional invoices, send them digitally, and monitor payments.
• Access company secretary services – Stay compliant with Companies House filings and annual confirmation statements.
• Integrate with accounting and payment tools – Seamlessly connect with Xero, QuickBooks, and online payment platforms.
• Use 24/7 support and guidance – Ask questions, get help, and troubleshoot through ANNA’s dedicated support.

With ANNA handling the administrative and financial side of your business, you can focus on what really matters. Start with confidence, knowing your business is efficiently set up, fully compliant, and ready to grow.