Council to clamp down on housing 'racket' that leaves it to pick up bill for dodgy landlords

Rochdale council is to clamp down on a housing ‘racket’ that is costing the authority more than £1m a year. It will target rogue landlords who rent out ‘supported living’ properties to people with care needs.

While this type of accommodation is needed, unscrupulous providers cash-in by charging the council while providing substandard accommodation and support. A report notes that relatively low property prices in the borough attract investors, but this can have a ‘significant effect’ on the authority’s finances - ‘and, in some cases the support provided is not appropriate’.

The 'support' can sometimes consist of a telephone number which is manned for 30-minutes a week - for which the council is charged a management fee. The council is left with a £1.2m deficit as a result of such schemes. Bosses are now launching a ‘supported housing pilot’ to take on those who play the system for financial gain. A new team will inspect premises, check the support provided and inspect the books.

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Peter Maynard, the council’s strategic housing manager, explained the situation to a council scrutiny committee on Monday night. "The private sector has cottoned on to the fact that they can get additional monies on top of the rent for providing support," he said. "The council ends up picking up the bill for that and there is a substantial financial deficit attached to that unsupported housing benefit.”

He told councillors the government was effectively using supported housing rates from 2011 to recompense the council. That, he said, equated to 60pc of today’s costs, meaning the council was left to find the remaining 40pc. He also highlighted how it was