Landlords who ‘exploit’ the supported housing system will face fines of up to £30,000 or a ban on their activities, the government has said.

Landlords who rate especially poorly against standards of accommodation and support – rouge landlords, as the government calls them – may even face prosecution.

The government has set aside £20m of funding to tackle landlords who profit through benefit claims but fail to support vulnerable tenants through tougher inspection of both housing and housing benefit claims.

The money, provided to councils, will also be used to “improve local enforcement of the quality of accommodation and support to residents.”

Housing secretary Michael Gove says: “Time’s up for rogue landlords who take money from the taxpayer while exploiting vulnerable people.

“We are stepping in to help councils crack down on this appalling activity and I will be working closely with Bob Blackman on his private members’ bill to deliver tough new laws to end this practice once and for all.”

The bill will enter its second reading on 18 November.