According to a report published this month by the Commons Select Committee on Social Security, there are many landlords that are making millions from housing benefit fraud.

 

Five  million people are claiming housing benefit provided by the State to ensure that people can afford to live in a home. However the report is damning on a small percentage of landlords that are abusing the system by acquiring monies for tenants that simply don't exist.

The committee says that housing benefit fraud could be costing us much as £2 billion every year, they are also accusing unregistered managing agencies as part of the cause of the huge bill to taxpayers.

A housing benefit investor from Haringey Jim Gee, who was involved in helping the committee said: "These people are milking the system that is supposed to put a roof over the heads of the neediest members of society."

In the Eighties the Tories sold off council houses to increase home ownership and also allowed the eviction laws to become more lenient, it also encouraged a booming private renting sector for business people who recognised the financial positives of being involved in the marketplace.

Figures released have shown that during 1980-1981 £1.6 billion was paid out in housing benefit, which then rocketed to £ 12.2 billion in 1994-1995, making it one of the biggest social security budgets.