An Edinburgh landlord with a past conviction for unlicensed property letting has been awarded council contracts worth almost £8 million to provide accommodation for homeless residents.
William Lennie, 72, director and majority shareholder of Phoenix Properties Edinburgh Ltd, secured two contracts from Edinburgh City Council in May, totalling up to £7,996,785. The deals, which were finalised on May 1 and publicly disclosed on May 30, are for the provision of longer-term housing for individuals, couples, and families experiencing homelessness.
The decision to award the contracts has sparked controversy after it emerged that Mr Lennie previously pled guilty to housing-related offences. In 2010, Lennie and a co-defendant, Alexanderina Richardson, were convicted of operating unregistered lets and unlicensed Houses in Multiple Occupation (HMOs) in the capital. Court services confirmed the charges, stating Lennie was fined at the time, though the amount remains undisclosed.
Despite this, when approached for comment, Lennie denied the charges.
“I don’t know what you’re talking about. I was never charged with that,” he said, before adding, “She [Richardson] was involved, but she wasn’t involved because we cohabitated together. So I put my hands up.”
Lennie went on to reference previous convictions, stating: “I was done in 1985 for ghost tenants. DHS fraud. I went to court in 1989, 1990. Ten years later I went back to court again. This time it’s for mortgage fraud.”
“Ghost tenants” refer to fraudulent housing benefit claims made for individuals who either do not exist or are ineligible.
The revelation has drawn criticism from some city councillors. Stuart Dobbin, SNP finance spokesperson, expressed alarm over the contracts.
“It’s extremely concerning that this is just coming to light,” he said. “There are clearly serious questions to be answered about the due diligence being undertaken on multimillion-pound contracts dished out by the Council. This is especially so following the unlicensed HMO scandal last year.”
According to the council, the contracts are intended to house those who can “independently manage in their own accommodation” and benefit from visiting support services. Residents are typically expected to stay for around 18 months, though durations can vary significantly.
Phoenix Properties operates a number of rental properties across Edinburgh, including a serviced apartment complex in Lochend. The company declined to comment when contacted.
In response to the controversy, a spokesperson for Edinburgh Council said: “We work with a range of landlords and providers across the city to help us tackle the current housing emergency. We complete full due diligence checks on each provider.”
Despite Lennie’s past, the council insists that all necessary checks were carried out before awarding the contracts.