New research finds lack of supported housing cost NHS mental health services £102 million in 2024/25
Over 95% of urgent mental health beds are occupied, well above the safe 85% threshold, fuelling a costly cycle of delayed discharge and readmission
Supported housing costs just a third of an inpatient bed and could save the NHS up to £65m a year
Mental health patients are being forced to remain in hospital despite being clinically ready for discharge, new research has found.
This is due in part to a lack of available supported housing in local communities across England, which led to 121,695 additional hospital bed days in 2024/2025 (i), costing mental health services across England an estimated £102 million.
The findings were a released in new report published today [Tuesday] by the Royal College of Psychiatrists (RCPsych), Look Ahead and the National Housing Federation.
The report, Breaking the Cycle: Supported Housing as an Enabler of Mental Health Hospital Discharge and Community Mental Health Service Delivery, finds that a lack of supported housing in local communities is a major driver of delayed discharge, readmission and rising pressure across mental health services in England.
Meanwhile, supported housing costs around a third of an inpatient bed and could save the NHS £53m–£65m a year. (ii)
Patients waiting for supported housing accounted for 22% of all delayed discharge days in mental health inpatient services in 2024/25. (iii)
More than 95% of urgent and emergency mental health beds in hospitals across England are occupiediv, leaving little room for new patients, and far exceeding the 85% recommended RCPsych standard.
As a result, the NHS in England spent more than £1.4 billion on private mental health beds between 2019 and 2024 to meet the shortfall. In addition to this, £164 million was spent on adult acute Inappropriate Out of Area Placements in 2023/2024.
In a 2025 RCPsych survey of its UK membership, Psychiatrists confirmed many areas of the UK struggle to meet the demand for mental healthcare, with unrelenting pressure being placed on staff who are being forced take critical decisions about patients’ admission and discharge based on bed capacity. Disappointingly, a lack of community provision, including crisis care and supported housing, often results in patients relapsing and being readmitted into hospital.
Dr Jon Van Niekerk, Chair of the Royal College of Psychiatrist’s General Adult Faculty said:
“Across hospital services, many patients are clinically ready for discharge but experience delays due to a lack of appropriate housing and community support options. At the same time, some individuals leave hospital into accommodation that does not adequately meet their needs, which can increase the risk of relapse and readmission. This pattern places additional strain on individuals, families, and the wider health and care system.
“Secure and appropriate housing is a fundamental component of effective mental health care. Greater alignment between health and housing policy is essential to ensure people can leave hospital safely and sustain their recovery in the community. Strengthening this interface has the potential to improve outcomes, reduce pressure on inpatient services, and support more efficient use of public resources.”
RCPsych, Look Ahead and National Housing Federation are calling on the UK Government, NHS England, Homes England and the Greater London Authority to commit to long‑term, sustainable funding for supported housing, greater rent flexibility and stronger integration of housing into national and regional mental health policy.
Chris Hampson, Chief Executive at Look Ahead, which delivers mental health hospital discharge services across London and the South East, said:
“Every year we support hundreds of people with mental health needs to move out of hospital and rebuild their lives in the community. When supported housing is available, people recover faster, avoid relapse and don’t cycle back through inpatient care.
“But when the right housing and support isn’t there, people are left waiting in hospital beds they no longer need, at huge cost to both individuals and the NHS. Supported housing must be recognised and funded as core mental health infrastructure, not as an optional add‑on.”
Salma, 20, who arrived at Look Ahead’s Hope Place service in Slough after six months in hospital, said:
“If this place wasn’t here when I came out of hospital, I would have likely had to go back to my family’s house if there was nowhere else to go. That would not have been beneficial for me as I would have most likely relapsed. Here, it’s homely, supportive and comforting. I have not been back in hospital since I came here. I’ve 100% come a long way.”
Notes to Editors
Access the report here: https://www.lookahead.org.uk/app/uploads/2026/04/Breaking-the-Cycle-report.pdf
The Royal College of Psychiatrists is the professional medical body responsible for supporting more than 22,000 psychiatrists throughout their careers from training through to retirement. We set and raise standards of psychiatry including promoting quality and research. We work to secure the best outcomes for people with mental illness, learning difficulties and developmental disorders by promoting excellent mental health services. We work with patients, carers and other organisations interested in delivering high quality mental health services.
For more information and interview requests please contact:
Phone: 0208 618 4220
Email: press@rcpsych.ac.uk
Out-of-hours contact number: 07860 755896
Web: www.rcpsych.ac.uk
Twitter: @rcpsych
Look Ahead delivers specialist supported housing for around 3,500 people every year across London and the South East, including around 1,000 people with mental health needs supported through 34 specialist services. We work at key transition points in the mental health pathway, including discharge from hospital, providing stable homes and recovery‑focused support that helps prevent relapse, reduce readmission and improve outcomes.
Kate Bawden, Director of Communications and Fundraising
katebawden@lookahead.org.uk
07581 145741
www.lookahead.org.uk/our-services/who-we-support/mental-health/
The National Housing Federation is the voice of affordable housing in England. We believe that everyone should have the home they need at a price they can afford. That’s why we represent the work of housing associations and campaign for better housing.
Our members provide over two and a half million homes for six million people. And each year they invest in a diverse range of neighbourhood projects that help create strong, vibrant communities.
For more information visit: www.housing.org.uk
Contact: Param Singh, PR Officer at the National Housing Federation
paramveer.singh@housing.org.uk – 020 7067 1029
Related news
Experts in mental health, disabilities, homelessness & youth support
Look Ahead’s flagship mental health service highlighted on BBC’s One Show
Director General of Adult Social Care visits Look Ahead
