Channel 4 has just reported that £400,000 of housing benefits paid to a letting agent running a "guaranteed rent" scheme, had disappeared in a "puff of smoke".

The TV channel had been running an investigation into London Housing Solutions which operates the scheme letting properties to benefit claimants on behalf of landlords.

When Channel 4's reporter Ciaran Jenkins finally tracked down their present and former directors they were at a loss as to where the money had gone and would not admit any liability on their part.

 

An offshoot of London Housing Solutions, Local Housing Solutions, which jointly shared staff, incomes and  offices also denies any liability.

Jenkins said that many tenants were scared that they would be thrown out of their homes, as approximately 100 landlords are owed money by one or both companies.

The person who registered the two companies is a Keith MacGregor. The present owner of London Housing Solutions, Darren Saunders, is putting it into administration, he purchased the company in 2013.

The Company Local Housing Solutions is still running business from Catford in South West London. They are now looking after those who are owed money by its past partner, although taking on its clients it will not take on the debts.

The two companies operated a guaranteed rent scheme and took on landlords' properties on their behalf, rented them out to tenants whose housing benefits were paid directly to London Housing Solutions by several local authorities.

The tenancy management period could be as long as five years and in theory the scheme run properly would have benefited all parties, as London Housing Solutions would take a percentage of the proceeds and hand over the remaining rent to the landlords.

When Channel 4's reporter Jenkins spoke to Darren Saunders (London Housing Solutions) he was adamant that he had contacted the local authorities last November, when he took over the company, to immediately stop the payments.

 

He said that he had no idea where the missing £400,000 was.

Andrew Jeffrey , director of London Housing Solutions also claimed that he did not know of the whereabouts of the £400,000. He also claimed that he fallen out with Keith MacGregor ( the person who set the two companies up) and assumed control of London Housing Solutions whilst MacGregor concentrated on Local Housing Solutions.

Channel 4 made many attempts to contact MacGregor who has not made any comment to the reporter.

In the meantime an email was received by Channel 4 from an employee of Local Housing Solutions, supposedly from MacGregor, that the company had not benefited in any way from the missing housing benefits payments.