Ealing Council’s Private Sector Leasing Scheme: A Disaster for Landlords – Ealing Council respond

It was interesting to learn about Ealing Council’s practices, which are common among many councils. However, it was not mentioned why estate agents would be involved in renting to councils. Council websites often encourage landlords to rent directly to them, offering guaranteed rent, usually for two years, and paying a nice backhander for doing so. This is how it works you set up a company and approach local estate agents claiming to be a company let. Any honest agent will know this is a scam, but that’s another story… you create a tenancy agreement with the landlord (that the agent has sacrificed) Of course it’s not an assured tenancy it’s a contractual tenancy – the company then leases it for two years to the council – and they receive the incentive payment – could be 3K or 6K depending on the size of the property… company may be receiving a higher rent, pays the agent for up to two years – no deposit and the company that has been set up dissolves – sets up a new one. The agent that I am dealing with claims that he honestly had been misled by this company… the landlord has a sitting tenant and no rent has been paid since March! The people living in the house have an assured tenancy with the so-called company which took a deposit of over 1500.00 and does not answer the calls. Uxbridge council introduced them to the company as they were living in a hostel… however, now say that they are not at risk of being made homeless as the landlord (the company) has not served the correct notice…. It is the incentives that the councils pay that have created this scam. Surely, all councils should check that the property that is being used to house the homeless is owned by the company or people that lease it to them – this most basic check would stop these villains ( may be showing my age) – and the estate agents who place landlords in this position, still charging the landlord management fees and pretending it is a standard let. For your information – there are at least 3 landlords that I am aware of who have been trying to get their properties back for over 4 years and on enquiring are told the legal team is dealing with it – other than that no other information is provided. They too are with Ealing Council – what your landlord needs to do is ask the agent who introduced him to the council – who received the incentive, I might be wrong but I suspect it was the Agent and not him.

Reply to the comment left by Rebecca Palmer at 23/08/2024 – 17:40
Steer clear of letting to Councils.