Money laundering, build the properties for cash, rent them out for credit
There’s a homeless half way house in hackney.
It’s got over 300 “flats”. The sink and cooker are one unit.
The shower and toilet are one unit.
It’s smaller than a prison cell is allowed to be.
The homeless have to pay council tax on it as it’s classed as a flat not a small unhygienic room.
The homeless would have more money for job search and interview clothing, travel etc if it wasn’t for this scam.
It’s very cramped and that many people in one space drives you crazy.
Imagine 300 “flats” at £1000 a month. The council love it because they get a lot of council tax in a small area.
“The lettings model was also being actively promoted as an investment opportunity amongst both existing landlords and, possibly, more widely. This has contributed to the strong growth of conversions using the model”
You'll still have to pay the housing benefit whilst building these council houses, it does mean finding money from somewhere, maybe a new tax on multiple home owners? Something to slow down the baby boomer property portfolios, may make houses more affordable for the youngsters?
The rental market in large parts of England is a national disgrace. If you're unemployed then this is what you get (a cell), unless you can get on an association list, but they only accept families or disadvantaged types. And when you do manage to find some shitbox you're gouged for letting fees, credit checks, etc. Even as a low wage earner it's bloody awful. The system is broken.
Is this a cultural thing, or is there some other factor I'm missing? In my corner of rural America, many of the rental properties are converted old single-family homes. I'm not horrified by the concept.
The guy paying £980 for a room with a dripping ceiling is definitely being gouged, though.
This was Blair's Labour's biggest failure, expanding housing benefit more towards private landlords and away from council owned properties.
I have a friend who manages rental properties for landlords, he owns a few properties, but instead of managing them himself, he rents them to local authorities as he gets more money that way. Seriously, WTF !!!!
It's not as bad now since Cameron brought in the limit of what councils are allowed to pay, but I know a few people who made millions during Blair's Labour.
A council house should be owned by the local authority, and no long term housing benefit should be paid to private landlords.
Local authorities should have minimum standards they’ll pay benefits out on.
Yes, that means someone will have to go out and actually view the place.
so they're giving homeless people shelter ? has to be better then the street ?
Government programs are and always will be gamed. Moral hazard like barnacles on a ship.
Thatcher's 'ownership society'
landlords are the cancer of our society, very few other people earn so much for contributing so little.
Landlords being assholes, surprise surprise.