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Council Housing
Graham Barlow
Posted: 16 December 2010 17:48:35(UTC)
#1

Joined: 09/03/2009(UTC)
Posts: 203

According to recent research hundreds of thousands of Council property is being sub=let by the allocated tenants averaging a yield of £20000 per annum to the original tenant. Surely the local authorities should get to the bottom of this scandal without much difficulty ,if not they could put it out to the private sector to carry ou the investigations. Secondly how much tax due on these illgotten gains have reached the Tax office? Thirdly how much of this rent has been declared before submitting claims for benefit? Is there anyone (Minister) in Government responsible for getting investigations underway vigurously?. It makes me positively angry when I pay Tax so assiduosly to find out that this sort of scam is ignored by the politicians.
Philip Clift
Posted: 17 December 2010 10:41:43(UTC)
#2

Joined: 22/06/2010(UTC)
Posts: 9

Average of £20K?

Where did this figure come from? Our area is probably around the mid-point of housing costs in the UK, and a three-bedroomed ex-council property lets out for about £450 to £500 pcm - a gross yield of up to £6,000.

Assuming the tenant who is illegally sub-letting has to find somewhere else to live (and therefore pays rent) the net yield is likely to be less than half, let's say £3000 - a long way adrift of £20,000.

"According to recent research..." can you clarify?
Harry
Posted: 17 December 2010 10:46:42(UTC)
#3

Joined: 07/07/2008(UTC)
Posts: 4

he probably read it in the express
Steve Hayes
Posted: 17 December 2010 11:11:54(UTC)
#4

Joined: 07/11/2006(UTC)
Posts: 15

I think what mainly happens

man A has a council flat, and woman B also has her own place
They get together - but will it last?

If one of them hands back the council flat and then they split up that person would be in dead shtook.
Truth Searcher
Posted: 17 December 2010 11:18:22(UTC)
#5

Joined: 12/12/2007(UTC)
Posts: 5

I know of a Turkish man who has a council property for his English family, yes he has another family in Turkey. Once he got his council house he then bought for cash, a house for his english family. They moved in to their new house. He kept the council house to rent out to his Turkish employees, who were crammed in like sardines. He isn't paying interest or rent on the private dwelling. He is however raking it in on the rent from his employees. He owns dozens of fast food outlets and has a very large import/export business and runs several very large businesses in Turkey. I think this is the type of person the writer was thinking of when having their rant.

Before anyone says "have you told the authorities". the answer is no. I have spent my life doing that sort of thing and always, without exception, been dropped in it and not supported.

That is why the writer is correct in suggesting the authorities should stop burying their heads in the sand and do something about it. Oh! I forgot, it's not their money they are wasting is it. No chance of anything being done then I guess. As usual.
Redundant (Old Timer?)
Posted: 17 December 2010 11:22:19(UTC)
#6

Joined: 07/01/2010(UTC)
Posts: 213

My son, when a student rent three ex Council places in London. The "tenant" in one lived in Leicester - I use tenant as we did not think he had purchased it! In another the "tenant" had gone for a prolonged holiday in Nigeria. So yes I agree something should be done. Oh and we did pass our misgivings on to the Councils concerned, not that they did anything. Still with money tight they may start looking at this lost income now!
Chris - 1
Posted: 17 December 2010 11:26:55(UTC)
#7

Joined: 06/05/2009(UTC)
Posts: 6

The simple answer is that these type of investigations are quite labour intensive and costly plus the person benefiting from this type of scam is usually hard to detect.
The government and HMRC find it much easier to tackle the generally stable business/business person who have their own home are fairly stable with 2.2 kids at the local school. It is far easier to turn the 'screws' on this type and get a little extra rather than go through the effort of chasing someone who actually does not care.
Nemesis
Posted: 17 December 2010 11:34:13(UTC)
#8

Joined: 28/05/2008(UTC)
Posts: 14

yes agree, there is no credible basis for a monthly rental income of £1,700 on a council property. A 2 bedroom Georgian apartment in posh area of Bath is only £950 pcm.
You would have to pay rent at almost £3,000 pcm to yield £20k....

Lets deal in realities not conspiracy theory crap......
Jonathan
Posted: 17 December 2010 11:59:40(UTC)
#9

Joined: 09/08/2009(UTC)
Posts: 108

£20k does sound a bit on the high-side for the average council property.
But I do think they should investigate this fraud.
Jonathan
Posted: 17 December 2010 12:05:39(UTC)
#10

Joined: 09/08/2009(UTC)
Posts: 108

It could also work like this, which would be very difficult to find anything wrong with:
man A has a council flat, and woman B also has her own place, they get together and move into the council flat and let the woman's pad.
Now if there is nothing wrong with that what would be wrong with doing it the other way round?
i.e. they get together and move into the woman's pad and let the council house. It sort of adds up to the same thing.
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