Birmingham Post

Fraudsters could target ‘broken’ housing sector

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LOOPHOLES in the ‘exempt’ supported housing system in Birmingham exposes vulnerable tenants to danger, according to a scathing new report.

Oversight and rules are so lax that fraudsters can potentiall­y operate freely and funnel millions of pounds of public cash into private pockets.

The sector – called ‘dangerousl­y unregulate­d’ by homeless charity Crisis – is worth £110 million in housing benefits cash in Birmingham alone, and an estimated £1 billion nationally.

It is supposed to ensure vulnerable people have somewhere safe to live where they can access support to for mental health issues and addictions.

But a ‘scandalous’ lack of regulation­s has instead made it an attractive money-spinner for people who do not always have the best interests of tenants – with some involved in potential fraud and other criminal activity.

That was the verdict of the boss of one housing provider who has just exited the sector.

In a 48-page report reflecting on lessons learned, the Board and executives behind Prospect Housing – now closed – say the exempt sector in Birmingham and nationally needs a radical and urgent overhaul.

“It is a broken system and not fit for purpose,” said Vicky McDermott, Prospect’s departing chief executive, about the report, called “Safe, Successful, Sustainabl­e”

The findings echo what local politician­s and charities have been saying for longer.

Some 20,000 people in Birmingham are housed in exempt properties, usually a type of house of multiple occupation with rooms for up to six people, but sometimes bigger hostels.

When poorly managed, anti-social behaviour, drug taking and violence spills out into communitie­s. Police say it is a huge problem.

This week the Government pledged to work with Birmingham City Council to find a solution to the tackle rogue landlords.

Housing Minister Eddie Hughes, MP for Walsall North, said he would work with Sharon Thompson, the council’s cabinet minister responsibl­e for housing.

But he also suggested the problem lay with a few bad landlords, not the housing system generally, saying: “Although I fully appreciate that the number of units of supported accommodat­ion in Birmingham has doubled from approximat­ely 11,000 to 22,000, it only takes a small percentage of rogue landlords to create a significan­t problem.”

The Government had already provided Birmingham with £2 million as part of a pilot project to improve exempt accommodat­ion, he said.

The city’s biggest provider of exempt supported housing was this month deemed “non compliant” by the Regulator of Social Housing, a government agency.

The Regulator found that Reliance Social Housing CIC, designated as a “not for profit” housing provider, was funnelling much of the public money it received in enhanced housing benefits – running to millions of pounds a year – to private companies “and failed to ensure that any arrangemen­ts do not inappropri­ately advance the interests of third parties.”

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