09/10/2026
COMPANIES PROFIT FROM INSECURE HOUSING IN OLD COUNCIL BUILDINGS
In early 2025, the Lowe Group (see [1]) approached Central Bedfordshire Council (CBC) seeking to occupy a former council care home and rent rooms on 30-day tenancies, paying nothing to the council whilst retaining the rental income. The council remains responsible for the building fabric, health and safety, and so on.
This is known as “guardianship”, where a company “looks after” an empty council building such as a care home, before it is demolished or sold.
It can be a lucrative arrangement for a company, which effectively operates an unlicensed House in Multiple Occupation (HMO), but is less attractive for tenants and taxpayers. For example, there's no need to protect deposits, or bother with secure rental contracts.
The company was promoted to CBC by a councillor representing Linslade, who wrote in September 2025: “The Lowe Group are a successful company who can invest money and have a good track record of providing accommodation for young professionals, key workers …”.
The BBC has recently looked at companies such as the Lowe Group following complaints from tenants including anti-social behaviour [2]. CBC did not proceed with the Lowe Group’s proposal.
WHAT’S THE DEAL?
Guardianship companies seek occupation of empty council buildings, paying no rent to the council while renting rooms to occupants on short-term “licences”, typically 30 days. The council would remain responsible for maintaining the building’s structure.
As the BBC notes:
“Guardianship companies are not obliged to protect their deposits or carry out repairs not specifically provided for in the agreement. Landlords can also visit at any time, without warning, and evict residents without giving a reason.”
Companies claim to provide “affordable accommodation for key workers”, which might suggest significant investment in the building. Not quite.
The Lowe Group wanted to occupy the former Westlands care home in Leighton Buzzard, proposing 47 rentable rooms for an investment of just £90k. The (now demolished) building was in a poor state of repair and former residents had moved to a brand new and brilliant care home.
When I asked whether the company would apply for planning permission for HMO use, the representative declined. When I checked with planning officers, it was unclear why the company would be exempt from the rules that apply to everyone else.
IT SEEMS TO BE A GOOD EARNER
The company (or rather, the holding company) is now holding £5.8m in shareholder funds, an increase of £1.2m at December 2025, following a £1m increase in 2024.
If councils provide empty buildings rent free until they are sold, while continuing to maintain the structure, and companies invest relatively little before renting rooms, the profits can be considerable.
In Leighton Buzzard, Housing Benefit will pay £115 per week to rent a room in an HMO. With 47 rooms, that produces £5,405 per week, with no rent paid to the council for use of the building.
That is around £281k a year. Even allowing for heating, hot water and electricity costs, it represents a substantial return.
AND IF THE COUNCIL NEEDS THE BUILDING BACK?
If a council required possession of the building, the company could swiftly evict tenants (who essentially have few rights), potentially making them eligible for council-funded temporary accommodation elsewhere. Meanwhile, the company, having collected the rental income, can simply hand back the keys.
CBC prides itself on investing millions each year improving its social housing stock. Guardianship does not offer quality accommodation or secure tenancy.
Appendices:
[1] “The Lowe Group”: https://thelowegroupltd.com/
[2] BBC story: https://www.bbc.co.uk/news/articles/cj4kvge1pyvo