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

IT Project Manager - Braintree District Council

Essex County Council
Up to £350.0000 per day
IT Project Manager - Braintree District Council Temporary, Part-Time 3 days per week 2-3 Months Contract Up to £350.00 Umbrella per day dependant on e England, Essex
Recuriter: Essex County Council

Service Manager - Schools and Governance

Oxfordshire County Council
£68,143 - £71,574
Together, we’re the moment makers Together, we’re shaping children’s education for the future. Every day, our colleagues are helping to transform the lives of the residents of Oxfordshire. Oxfordshire County Council is committed to deliv Oxford, County Hall
Recuriter: Oxfordshire County Council

Senior Infrastructure Engineer - Braintree District Council

Essex County Council
Up to £500.0000 per day
Senior Infrastructure Engineer - Braintree District Council Temporary, Part-Time 3 days per week 2-3 Months Contract £389.864 PAYE / £500 Umbrella dai England, Essex
Recuriter: Essex County Council

Associate Educational Psychologist

Oxfordshire County Council
£820 - £19680
Together, we’re the moment makers and we’re focused on making every day the best it can be for children, young people and their families. It’s not a job – it’s a passion and together, we’re shaping education for the future. Every day, our coll Didcot
Recuriter: Oxfordshire County Council

EHC Coordinator – SEN, Education Directorate

London Borough of Bromley
 BR10-11 (£38,633 – £42,608pa)
London Borough of Bromley Council is working hard to do things differently in SEND, to do things better than ever before.  The Civic Centre, Churchill Court, 2 Westmoreland Road, BR1 1AS
Recuriter: London Borough of Bromley
Linkedin Banner