Housing lets scandal

Oct 31 2006 By David Bell, Birmingham Mail

A HOUSING official has been sacked and another suspended over allegations of a "cash for homes" racket operating in Birmingham's inner city.

Investigators believe the pair were only minor players in a scandal which has seen nearly £2 million worth of council homes in Washwood Heath and Saltley allocated to families who were not entitled to them.

They are quizzing the tenants to try to uncover the identity of the mastermind behind the scam.

Cabinet housing chief Coun John Lines said: "We will leave no stone unturned to get to the bottom of this. Those found to be involved will be dealt with accordingly."

The affair only came to light through an audit check on direct exchanges - a mechanism through which tenants voluntarily swap their council homes.

In a case selected for a random spot check, a family who had moved into a three-bedroom home in the inner city were found never even to have been on the council's books, let alone have another house to swap.

Further checks going back 18 months revealed eight other cases of tenants who had been improperly given the keys to much sought after council homes without having one of their own to exchange.

Up to 600 families are in the waiting list for each three bed house that becomes available in the Washwood Heath area.

In the nine cases unearthed, tenancies were granted to families who weren't even on the list.

Investigators are quizzing them about suspicions that cash was involved in the allocations. They are particularly keen to find the end of the money trail.

The council today refused to comment on whether families living in the nine improperly let properties would be evicted.

But a spokesman confirmed a top level investigation was going on. " We are unable to comment further on the allegations. We have not involved the police yet."

Coun Lines said he could not comment further at this stage.