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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Service Director - Environment

City Of Doncaster Council
£108,164 per annum
We are looking for an energetic and resilient leader to become our next Service Director of Environment here at City of Doncaster. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Environmental Health Officer – Food, Health & Safety & Animal Licensing

Ashfield District Council
£39,152 – £41,771 per annum plus £2,000 Market Supplement (Pay award pending)
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties of an Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Assertive Outreach Officer

Ashfield District Council
£28,598 - £31,022 per annum (pay award pending)
This is an exciting opportunity to join the Housing Options Team as an Assertive Outreach Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Graduate EHO– Commercial and Environmental Protection

Ashfield District Council
£28,598 - £31,022
We are looking for an enthusiastic individual to carry out the full range of day-to-day functions and duties Environmental Health Officer Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner