William Eichler 07 April 2017

'Dangerous rogue landlord benefit scam' costs taxpayer millions

Council chiefs are calling on the Government to close a loophole in the law which enables rogue landlords to carry out a dangerous and costly housing benefit scam.

The legal loophole allows landlords to convert properties into multiple tiny ‘units’. These ‘micro-conversions’ are marketed as self-contained flats, which helps the landlord to secure the maximum level of housing benefit payments.

The Local Government Association (LGA) warned this is a ‘scam’ and described it as an abuse of taxpayers’ money.

Figures show private landlords pocketed £9.3bn in housing benefit in 2015, twice that of £4.6bn in 2006, and it is thought this micro sub-division of properties - called the Lockdown model - has contributed to this sharp rise.

The LGA also said these rogue landlords were housing tenants in poor and often dangerous accommodation.

Landlords can convert homes into a maximum of six small self-contained studios with en-suite showers and portable cooking equipment, without planning permission.

However, the electricity supplied to the different properties is often run on stolen meters or hotwired supplies, creating fire hazards.

Thanks to new Government legislation, councils will be able to issue landlords with fines up to £30,000. They will also be able to apply for ‘banning orders.’

This does not go far enough however, the LGA said. Councils should be able to jail offenders. They should also have streamlined housing and planning powers to stop landlords converting properties into ‘micro flats’ without planning permission.

‘No landlord can act outside the law and councils will do everything in their powers to ensure tenants can live in rented properties safe in the knowledge that local authorities are there to protect them,’ Cllr Judith Blake, LGA housing spokesperson.

‘However, the reputations of all good landlords are being tarnished by the bad ones and councils are being let down by the current system. Legislation is not keeping pace with the ingenuity of landlords to exploit loopholes which need to be closed as soon as possible.’

SIGN UP
For your free daily news bulletin
Highways jobs

Independent Travel Trainer

Oxfordshire County Council
£41,771 - £45,091
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Contract & Compliance Manager

Oxfordshire County Council
£63,576 - £67,003
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Procurement Manager

West Northamptonshire Council
£49587 - £52860
At West Northamptonshire Council, we are currently looking for two experienced procurement professionals to join and support both our People and Resources and Place and Capital Business Partner teams. As procurement managers you will play a central role Northampton
Recuriter: West Northamptonshire Council

Technical Assistant - Place Services

Essex County Council
Up to £25081.00 per annum + + 26 Days Leave & Local Gov Pension
Technical Assistant - Place ServicesPermanent, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Senior Project Manager (Major Projects)

Calderdale Metropolitan Borough Council
£49,282 - £52,413
Are you a Senior Project Manager with significant experience in delivering highway and infrastructure projects? Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council
Linkedin Banner