Case of mayor who runs letting agency is raised in Parliament

The case of a local mayor who owns a letting agency and whose charity for the homeless is said to be under investigation by the Charities Commission, has been raised in Parliament.

During exchanges on the private rented sector, the Tory MP for South Thanet, Laura Sandys, said: “Does my hon. Friend agree that we need to bear down on malpractice in the private rented sector?

“The Hackney Gazette reports that a councillor who has set up a charity for the homeless refers them to his own estate agency and then places them in properties that he owns in my constituency.

“Is that not an abuse of our housing system?”

Housing minister Kris Hopkins replied: “I know the details involved, because my hon. Friend has written to me, and we have forwarded them to the appropriate authorities.

“The Charity Commission is now examining what my hon. Friend has alleged, and I will not comment any further until after the investigation.”

The Hackney Gazette reported on the case of Cllr Michael Desmond, who owns On the House, an agency in Crystal Palace, south London.

The paper said that his charity, House the Homeless, refers clients in social need to his agency.

Cllr Desmond refutes any malpractice.

The paper’s report can be seen at the link at the end.

Elsewhere in the exchanges in the Commons, housing minister Hopkins was also asked: “What is the minister doing specifically to stop tenants being ripped off by letting agencies? The model tenancy agreement was meant to have been published last October, so when can we expect to see it?”

Hopkins replied: “The model tenancy agreement will be published shortly. I am grateful for the opportunity to say what we will do, including a document on how to rent and a redress scheme to protect landlords and tenants, in addition to the Consumer Rights Bill, which insists on forcing agents to publish their fees on websites and to put them on display.

“We also want to make sure that individuals who fail to look after the needs of others face not a maximum fine of £5,000 but a limitless fine. We want to protect the rights of tenants and we are putting in place the opportunities to do so.”

http://www.hackneygazette.co.uk/news/charity_commission_investigates_hackney_speaker_s_charity_1_3602603

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2 Comments

  1. Mark Reynolds

    I have only read this quickly but what is wrong with this? I suppose he is using his "position of trust" to his advantage but so what? He is housing those in need and with the plethora of tenants available to him, is he not just doing what his charity siys it doe son the tin and housing those in need?

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  2. Michael

    Apparent & likely conflict of interest applies here. He will be accused, rightly or wrongly, of using one position to create income to another. This has not only ethical issues in general but as the town mayor, ethical issues in conflict with his mayoral post. Furthermore there may be tax implications as one of his enterprises is a charity. Very messy and unwise if he is innocent. If he is guilty then he needs a good politician's lawyer and there are a few of them to be had. President Sarkozy's may be looking for a new client ?

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