14th
Apr 2017
Local authorities across the UK are demanding that the Government does away with a loophole in the law which helps rogue landlords to get away with costly housing benefit scams; their actions can be potentially dangerous for the unlucky tenants.
The authorities want regulations to be scrapped that allow landlords to convert properties into many little 'units'. The units are in effect 'micro-conversions' and rogue landlords are advertising them as self contained flats, this helps them to achieve the maximum amount of housing benefit payments.
The LGA (Local Government Association) states that these landlords are operating a 'scam' and call it a shocking abuse of taxpayers' contributions to the government's coffers.
The association's figures for 2015 uncovered that landlords received £9.3 billion in housing benefits; this was twice the amount of housing benefits that landlords pocketed of £4.6 billion in 2006. The LGA believes that the 'micro-conversions' are one of the causes of the massive rise in benefit payments.
The association states that many of the rogue landlords who are using the Lockdown model (converting properties into 'micro-conversions') are making tenants live in very poor conditions and at times extremely dangerous accommodation.
Landlords are converting homes into tiny self-contained studios with portable cooking equipment and en-suite showers, many of the converted properties are unlicensed. The only restriction landlords are subject to is that one property is limited to no more than six studios.
In many of these home conversions, the separate studios' electricity are either hotwired or run on stolen meters, which are extremely hazardous with a real danger of fires at any time.
In spite of the councils now receiving greater powers to fine landlords up to £30,000 or handing out banning orders, the LGA wants them to have the power to jail these 'rogues'. The councils should also update their housing and planning regulations that prohibit landlords from turning properties into 'micro conversions' without gaining planning permission.
The LGA housing spokesperson, Councillor Judith Blake, said:"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.
"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."
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