A property investor supplying temporary accommodation to local councils is part of a family accused of avoiding tax through bogus prayer sessions, a Guardian investigation has revealed.
The Schreiber Family and Midos Group
Public records raise questions about the business interests of the Schreiber dynasty, which controls a nationwide commercial property portfolio via Midos Group. Companies linked to Midos Group allegedly exploited a scheme to deprive councils of tax, according to a court claim. Meanwhile, a similarly named but separate business, Midos Management Co, has provided homeless accommodation to the same councils for fees. Lawyers for Midos Group and a spokesperson for Midos Management Co deny any connection, but ancestry records, archived webpages, and company filings show significant personal and professional overlap between their owners and directors. Campaigners have expressed concerns, and an MP leading a cross-parliamentary group on temporary accommodation accused the Schreiber family of “having your cake and eating it.”
The Faith Room Scheme
Allegations of tax avoidance focus on two property companies owned by Schreiber family members that appear to have benefited from the “faith room” scheme, which has saved landlords at least £18 million, according to Verity, the property consultancy marketing it. The scheme exploits a provision exempting property owners from business rates on empty commercial property if the space is made available for religious worship. Verity incorporates companies that lease commercial space and claim to offer it for open prayer sessions, allowing owners to avoid rates. Last year, the Guardian revealed concerns that some rooms were not used for worship and were unfit for occupation.
Discovery Park Case
Similar allegations are documented in a claim for £1.7 million in unpaid tax by Dover District Council against Verity and two Schreiber family businesses owning Discovery Park science park in Kent. The court documents allege that 56 empty units were claimed to be available for worship, but sessions involved a pro forma notice, a table and two chairs, and a Verity staff member briefly reading a religious text on video. The council claims no evidence of public attendance. The defendants argue the sessions were legitimate. Lawyers for Midos Group, DP East, and Discovery Park say they are separate entities, but the park’s owner, Brooklee Limited, is ultimately owned by four Schreiber family members. David Schreiber is a director of Midos Group and Brooklee, while Discovery Park’s CEO Mayer Schreiber is a Midos director.
Clapham Pub Property
Another property in the scheme is a former pub in Clapham, owned by DMS Commercial UK, which is owned by David Schreiber. A notice advertising prayer sessions was pinned to the door, but a neighbor reported no group events. Lawyers for Midos Group said the space is leased to a faith group and that they are aware of various uses.
Midos Management Co and Council Contracts
Meanwhile, another Schreiber family member appears to be making millions from Lambeth and other councils through Midos Management Co, which matches councils with landlords for temporary accommodation. The company has collected at least £43 million on behalf of landlords for Lambeth since 2019. Midos Management Co is owned by Elizabeth and Jacob Endzweig. Elizabeth Endzweig denied any relationship with Midos Group, but records show she is David Schreiber’s daughter and co-director of several businesses at the same Stamford Hill address as Midos Group. An archived version of Midos Management Co’s website stated that “Midos Group is proud to offer our wealth of experience,” but the page was edited after inquiries. Lambeth council records also show Midos Estates, a Midos Group subsidiary, receiving funds for temporary accommodation, though Endzweig called this an error. Siobhain McDonagh, chair of a cross-parliamentary group on temporary accommodation, criticized the arrangement. Endzweig said her company operates strictly as an intermediary. Land Registry records show companies she directs hold at least 125 land titles. At least four other councils have paid Midos Management Co over £2.5 million in three years.
