Councils join scheme to tackle tenancy fraud

Some 147 local authorities have signed up to a scheme designed to crack down on the fraudulent subletting of council and housing association homes.

The Department for Communities and Local Government said the councils would benefit from a share of £4m funding made available to set up their own anti-fraud initiatives, which could include special hotlines and dedicated teams.

In a report, Tackling unlawful subletting and occupancy: Good practice guidance for social landlords, housing minister John Healey said fraudsters can earn thousands of pounds a year by unlawfully subletting their properties at higher rental rates. If caught under the new scheme, they will lose their tenancy, and possibly their right to future social housing.

Mr Healey pointed out that those occupying the properties may not even know about the fraud and 80% do not qualify for a council or housing association home. Once the fraud is uncovered, these tenants will be forced to find a new home through the private rented sector.

According to research by the Audit Commission, the number of unlawfully acquired or sublet social homes ranges from one to 100 to one in 20 in some inner-city areas. The Commission and DCLG have given councils and housing associations around 8,000 leads on potential fraudsters in their area. Members of the public will be given £500 if their information leads to the recovery of one of the first 1,000 homes.

The minister said he hoped up to 10,000 homes could be freed up for those on council waiting lists. "We can't allow cheats to hang onto the tenancies of council houses they don't need and don't live in,” he said.

David Orr, chief executive of the National Housing Federation, said a partnership approach is key.

"Through effective partnership working between associations and local authorities, this initiative can deliver significant benefits to those who need affordable, secure homes,” he said. “Every home which is freed up through this initiative is another home available to a family who genuinely need it.”

To obtain a copy of the guide, visit: http://www.communities.gov.uk/documents/housing/pdf/1396431.pdf