EXPLOITED: HMOs – when greed meets vulnerability, carving up communities for a profit

Words by Adam Smith / Pics by Ed King

Erdington Local launches a series of articles investigating the devastation caused by the mushrooming number of HMOs (homes of multiple occupancy) in Erdington and Kingstanding.

Chief reporter Adam Smith spent the last year living in HMOs and has seen first-hand how housing associations and rogue landlords are ripping off taxpayers – whilst exploiting the most vulnerable people in society.

Do you pay tax?

If so, then your hard-earned money is lining the pockets of ruthless housing associations and rogue landlords – whose greed is wrecking the lives of Erdington residents, tenants, and the most vulnerable people in society.

Nationally the taxpayer shells out billions of pounds for eye-wateringly inflated rents for benefits claimants’ rooms in HMOs – which get planning permission, despite Erdington residents and politicians bitterly complaining they are destroying the very fabric of the local community.

Hundreds of Erdington houses, including historic and beautiful Victorian properties, have been turned into HMOs – creating a living hell for both tenants and local residents who watch helplessly as the area they love becomes blighted.

Stockland Green is one of the worst examples in the country for the negative effect of HMOs and supported accommodation.

Those classed as ‘vulnerable’ and living in HMOs and/or supported accommodation are locked in a vicious circle; landlords charge the taxpayer £900 a month for a single room, leaving the tenant no motivation to get a job as the rent will be too high on a low wage. This investigation will explore examples of housing association staff actively discouraging tenants to work.

Tenants in ‘supported accommodation’ should get an hour of professional support a week, which qualifies their extortionate rent from benefits – but instead of proper psychiatric help, staff often only see tenants to demand a weekly ‘maintenance charge’, usually between £12 and £20, out of their benefits.

Instead of tenancy agreements which offer some protection to renters, those living in HMOs are forced to sign ‘licenses’ containing pages of draconian rules and potential infringements – which if broken can see the tenants made homeless with just a week’s notice.

Staff can enter rooms when they like and there have even been examples of male staff bursting unannounced into women’s rooms after 11pm.

HMOs radically changed the rental market in Erdington, with landlords now preferring benefits claimants and even advertising rooms for the price of the maintenance charge. Meanwhile, working people are trying to find somewhere to live from a dwindling amount of properties – which are increasing in price due to their scarcity.

This scandal crosses political lines too.

Legislation from the Conservative government has allowed ruthless companies, landlords, and housing associations to exploit the benefit system – whilst Birmingham’s Labour administration has allowed thousands of HMOs to be created in the city, without the ability to scrutinise the conduct of those organisations running them.

This investigation will unveil the close links between Birmingham City Council  and to the companies profiting from the system.

During the Government’s ban on evictions during the coronavirus crisis, housing associations in Birmingham have been quietly evicting people during the deadly pandemic.

Recently, Edgbaston MP Preet Gill called on the Government to extend the evictions ban. However, Gill is on the board of Spring Housing Association, which works extremely closely with Birmingham City Council – but which also evicted vulnerable tenants during COVID-19 lockdown.

One evicted Spring Housing tenant, Shamir Hussain, told Erdington Local: “I was evicted during lockdown by Spring Housing, just when I thought I was as low as I could they made it worse. They made me homeless during a pandemic where people were dying all around us, I will never forget that.

“They (Spring Housing) were getting £900 a month for me to live in a room; I could have paid a mortgage on a nice house for that obscene amount of money for one room. And when I did put a claim in for a much cheaper rent amount, for a whole flat, I was refused. It seemed like they were happy to pay £900 to Spring Housing but not a fraction of that to sort my life out.”

The area’s two most powerful politicians, Labour’s Erdington MP Jack Dromey and Erdington Councillor and leader of Birmingham’s Conservatives Robert Alden, both recognise the damage being done to the area by the scourge of bad landlords.

Dromey said: “I know how angry residents are about this issue, I went to a meeting on Frances Road two years ago expecting six people to be there and 70 residents turned up. And the problem has worsened in that time not got better.

“Stockland Green is where the problem is at its most acute, where the most prosecutions of landlords in Birmingham have been due to work with the police, and with the disproportionate dumping of vulnerable tenants into the area by landlords who do not give a damn about them and not give them any help.

“Some of these landlords let their tenants live in squalor in Erdington whilst they live in the lap of luxury in Sutton Coldfield. However, there are some very good landlords out there, which is all the more the shame when the bad ones undercut them to cram an extra person in.”

In the 1980’s Dromey helped residents in London fight a bitter dispute with slum landlords and even created a ‘Hit Parade of Bad Landlords’ with help from Radio 1 DJ Alan Freeman – who would regularly do a run down on television of the worst offenders.

The MP said: “We have use imaginative ways to fight these type of people but in Erdington we also need proper joined up action with the police, council, probation and mental health services working together to solve the problems created in the last five years in the housing sector which coincides with the Tories being in power.”

Councillor Robert Alden laments the changing face of the area’s housing stock, which used to be the envy of the rest of the city in years gone by.

He said: “Erdington has been blighted by HMO’s run by bad landlords.

“Erdington’s large stock of larger Victorian family homes have sadly often been taken over and turned into swathes of HMO’s – in many places seeing whole rows of housing turned from the purpose they were built for, to provide housing for families, into a collection of substandard and often below even minimum standard room size bedsits.”

He added: “Often quiet residential streets have suddenly found themselves besieged by bedsits acting under exempt housing placing drug addicts, alcoholics, and ex-offenders into our local community.

“Sadly, those rogue landlords have used loopholes in the system to convert houses far and beyond the scope they were designed for, often seeing three bedroom homes turned into six or seven room bedsits.

“Sometimes they also claim for alleged support provided to people while failing to provide anything like that – in the process taking huge amounts of tax payers money for services barely provided, failing their tenants, while also leaving communities like Erdington to suffer from the fallout.”

As well as the co-operation of all relevant agencies in Erdington, there also needs to be strong political leadership to stop the situation getting worse – but to also undo the systemic problems caused by five years of loopholes being exploited by those who had the most money to gain from flooding Erdington with high profit dangerous housing.

Throughout this series of stories, a light will be shone on some very murky corners and shocking practices – and this investigation will follow the money.

This investigation will explore how neighbouring HMOs crammed full of men have created ‘no-go roads’ for women and teenagers fed up of cat calling, sexual harassment, and threatening acts of misogyny.

There will also be stories from the female perspective, from suddenly having men moved into your safe space, as well as the unique HMO experiences of trans refugees.

This investigation will challenge those responsible on their behaviour – reporting them to the appropriate authorities if any laws were broken. Expect explosive revelations and, as readers, you have the right to demand resignations.

If you have been affected by HMOs or any of the issues mentioned in this article, we want to hear your side of the story – email Erdington Local on [email protected]