The NHS spent more than £100 million in a single year on mental health patients who remained in hospital beds simply because there was nowhere suitable for them to live once they were clinically ready to be discharged, a new report has found.
The report, jointly produced by the Royal College of Psychiatrists, the housing and support provider Look Ahead, and the National Housing Federation, calculates that housing-related delays led to 121,695 additional hospital bed days in 2024/25, costing the health service approximately £102 million. That figure represents a sharp increase from the £71 million incurred in 2023/24, when 109,029 bed days were lost for the same reason, and reflects a trend that has seen the number of patients stuck in hospital because of a lack of appropriate housing more than triple since 2021.
In February 2026 alone, patients awaiting supported housing accounted for 23 per cent of all mental health delayed discharge days, making the shortage of suitable accommodation the single largest driver of such delays. “Thousands of people who are clinically ready to leave hospital remain in inpatient settings because there is nowhere suitable for them to go,” the report’s authors note.
The human cost of a broken system
Beyond the financial burden, experts warn that the practice of keeping patients in hospital longer than medically necessary inflicts a “huge cost to both individuals and the NHS”. The report warns that discharging people into “inappropriate or unstable” housing can trigger relapse and readmission, creating what it describes as a “damaging and costly ‘revolving door’ cycle”.
The impact of inadequate housing on mental health recovery is profound. Research has shown that poor conditions such as damp, mould, overcrowding and insecure tenancies can significantly worsen existing mental health problems and contribute to new ones, including stress, anxiety and depression. Mental ill health is frequently cited as a reason for tenancy breakdown, while housing problems are themselves a common reason for admission or readmission to inpatient care. When the right accommodation and support are available, individuals recover faster, avoid relapse and do not cycle back through hospital.
Supported housing — homes that provide integrated support, supervision and care to help people live more independently — is regarded as a crucial component of effective mental health care, offering a safe environment for recovery. Yet the supply is shrinking. According to the National Housing Federation, there are approximately half a million supported homes across England, but that number has fallen by 1,540 since 2007 despite population growth. The government’s own Supported Housing Review estimates that between 211,200 and 490,200 additional supported homes will be needed by 2040.
Providers are under severe financial pressure. A survey by the National Housing Federation found that one in three (32 per cent) supported housing providers in England have had to close schemes in the past year, with many withdrawing from contracts or shutting services because they are running at a loss. Factors cited include inflation, rising recruitment costs and cuts to local government budgets. Analysis by the National Audit Office suggests that funding for supported housing was cut by 75 per cent between 2010 and 2020, equating to a loss of more than £1 billion.
‘Deeply concerned’ experts call for action
Dr Jon Van Niekerk, chairman of the Royal College of Psychiatrists’ General Adult Faculty, said: “We are deeply concerned that people with mental illness are being kept in hospital for too long, or discharged into unacceptably poor accommodation, because there isn’t enough supported housing available. This is causing people to relapse and, in some cases, become severely unwell. It is vital that we break this cycle and ensure people have the opportunity to get better within their local community. Mental health and supported housing services must be supported to work together more closely to ensure people can leave hospital safely and make a full and stable recovery. This will improve patient outcomes, reduce pressure on hospitals and prove more cost effective in the long run.”
Chris Hampson, chief executive of Look Ahead, which delivers mental health hospital discharge services across London and the South East, added: “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.”
The Department of Health and Social Care has been approached for comment. A government spokesperson has previously acknowledged inheriting a “huge housing crisis” and committed to increasing social and affordable housebuilding, while a 10-year health plan backed by a £26 billion boost aims to shift care from hospitals into the community and tackle delayed discharges. The Supported Housing (Regulatory Oversight) Act became law in August 2023, promising national standards and greater local authority powers, but by the end of 2024 it had not been fully implemented.
“Supported housing must be recognised and funded as core mental health infrastructure, not as an optional add-on,” Hampson said.