James Cunningham

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Tackling fraud in social housing

11 December 2009

The government recently launched the first-ever national crackdown on tenancy cheats to recover up to 10,000 council and housing association homes fraudulently sublet, and release them to those in real need. Tenancy cheats live elsewhere and can earn thousands of pounds a year by unlawfully subletting their properties at higher rental rates. If caught they will lose their tenancy, and could lose their right to social housing in future.

Those occupying these properties may not know about the fraud but 80 per cent do not qualify for a council or housing association home, and instead have to find a new home through the private rented sector. The Audit Commission have suggested that the number of social homes unlawfully acquired or sublet could range from one in 100 to as many as one in 20 in some inner-city areas - totalling as many as 50,000 homes nationwide.

147 councils have signed up to the Government's first ever national crackdown on housing fraud, including Coventry. With councils working alongside the housing associations in their areas, they will benefit from a share of £4m to set up their own anti-fraud initiatives - including special hotlines and crack squads to investigate allegations of fraud. Housing Minister John Healey said:

"We can't allow cheats to hang onto the tenancies of council houses they don't need and don't live in. I want people to feel the system for housing families who need homes is fairer and that's why I'm launching this national crackdown on tenancy fraud. This is first-ever fraud drive nationwide, which could free up as many as 10,000 homes for those on council waiting lists, with £4million and 8,000 hot leads for suspect tenants, 147 councils across the country can today get this crackdown on fraud off to a flying start. But public tip-offs are vital in tackling this problem. So I am also offering £500 to anyone whose information leads to us recovering one of the first 1,000 homes."

Jim Cunningham said:

"Unlawful sub-letting and occupation of scarce affordable housing is worse than theft. In addition to the financial loss to the public, it also means some families are missing out on a decent, affordable home and all that this can bring. In Coventry we can ill afford to let this sort of fraud go on, which exacerbates a problem made even worse by the fact we have approximately 4,000 homes in the city lying empty. I welcome the £30,000 Coventry City Council has been awarded to help tackle this problem as part of an overall package for the West Midlands of £270,000.”