Birmingham City Council is poised to launch its own investigation into a local housing company following explosive allegations of criminal behaviour linked to its financial collapse.
Administrators' Report Reveals Shocking Allegations
The potential probe centres on Midland Livings, a firm that provided housing for vulnerable homeless people. The company's demise, leaving debts exceeding £12 million, was detailed in an administrator's report which made claims of threats, deception, arson, and intimidation.
The firm operated within Birmingham's vast 'exempt' supported accommodation sector. This system funds housing for people like the homeless, care leavers, and ex-offenders through enhanced housing benefits, but has long been criticised for lax regulation.
Political Pressure for Accountability
The issue was thrust into the political spotlight at a full council meeting on Tuesday 2 December. Conservative councillor Alex Yip, representing Sutton Wylde Green, directly cited a BirminghamLive exclusive on the administrators' findings.
He demanded the authority examine whether its own officers bore responsibility for "failing to effectively oversee the firm's activities" and for "allowing these failings to continue for so long." He insisted any investigation must ensure those who misappropriated public funds face criminal probes.
Council Response and Sector-Wide Problems
In response, the council's cabinet member for housing and homelessness, Labour's Coun Nicky Brennan, confirmed an internal investigation into the Midland Livings case was an option actively being considered.
"There are issues with exempt accommodation in this city," Brennan stated, highlighting the council's lobbying of government for faster, stronger regulation of the sector.
Birmingham has become a national hotspot for such accommodation, with over 30,000 units across the city. While some providers offer excellent support, the poor oversight has been labelled a 'recipe for disaster', enabling exploitation and draining public funds with little guarantee of proper care for tenants.
