Illegal Eviction Case – Phoenix Supported Housing CIC

Summary

1.  A Wolverhampton supported housing company, Phoenix Supported Housing CIC, and its directors, KB and DSC, were prosecuted for illegally evicting a vulnerable resident.1‘Suspended Jail Sentences for “Shameful” Landlords Who Illegally Evicted Vulnerable City Resident | City Of Wolverhampton Council’ | Accessed 23 January 2025 The eviction followed a pattern of deception and the withholding of promised support, leading to the resident’s financial hardship. 

2.  All pleaded guilty to charges under the Protection from Eviction Act 1977 and the Consumer Protection from Unfair Trading Regulations 2008. KB and DSC received suspended jail sentences, community service, and fines, while the company faced significant financial penalties. The council highlighted this case as an example of concerning trends within the supported housing sector.

Abuse of Trust and Vulnerability

3.  Phoenix Supported Housing CIC was found to have exploited the vulnerability of the resident by failing to provide the necessary financial, physical, and mental health support they had promised.

4.  The resident’s unmet needs led to significant financial distress, which culminated in their illegal eviction. This reflects broader concerns regarding this specific sub-sector of supported housing provision.

Illegal Eviction and Breaches of Resident’s Rights

5.  The resident was subjected to an illegal eviction with only 14 days’ notice. Additionally, threats were made regarding their possessions.

6.  Key breaches included the absence of an occupancy agreement and a failure to inform the resident of financial obligations such as council tax.

7.  Phoenix Supported Housing CIC also engaged in unauthorised practices, such as entering into utility contracts on behalf of the resident without consent and neglecting to inform them of their legal rights, further compounding the resident’s misery.

Unfair Trading Practices

8.  The CIC engaged in deceptive and unethical practices by charging the resident for support services that were never provided.

9.  Misleading behaviour extended to unauthorised utility agreements, which further eroded trust and caused financial harm to the resident.

10.  Following an investigation, Phoenix Supported Housing CIC and its directors pleaded guilty to offenses under:

  1. The Protection from Eviction Act 1977; and
  2. the Consumer Protection from Unfair Trading Regulations 2008.

11.  The resulting sentences included:

  1. Suspended nine-month prison terms for KB and DSC.
  2. Community work and rehabilitation orders.
  3. Financial penalties comprising:
    1. £1,500 compensation to the resident;
    2. A £10,000 fine for the company; and
    3. £15,000 towards the council’s legal costs.

Condemnation and Wider Issues

12.  Judge Recorder Joanne Barker strongly condemned the directors’ actions, describing them as “thoroughly wicked.”

13.  Councillor Steve Evans reaffirmed the City of Wolverhampton Council’s commitment to a zero-tolerance approach toward landlord misconduct.

14.  This case may be an example  of broader breaches of residents’ rights in the supported housing sector, highlighting a need for tighter regulation and oversight to protect vulnerable residents.

Conclusion

15.  The prosecution of the CIC and its former managing director and director of housing underscores a severe breach of trust and significant breaches of resident rights. Some believe this case demonstrates the need for reform of the supported housing sector in England and enhanced regulatory oversight to prevent similar exploitative practices and ensure the protection of vulnerable residents. The council’s response serves as a deterrent to potential offenders.

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