A letting agency has been paid more than £5.5m in housing
benefit after its owner set up a charity to help the homeless. Investing
Solutions received those benefit payments over the past two years by finding
properties for single homeless men. The charity, Fresh Start Housing, finds
clients from London homeless charities. Neither the charity nor the company act
illegally. Investing Solutions said "the bulk" of their rents get
passed to private landlords, while Fresh Start said they referred clients to
both Investing Solutions and private landlords. The letting agent makes money
by putting several unrelated people in one house and charging housing benefit
for each person, rather than the property. Therefore, the total benefit payout
is higher than the rent fee passed on to the property's landlord. Read more on
the BBC website.
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