Housing Minister
John Healey has today 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 every council in
London. With councils working alongside the housing associations
in their areas, they will benefit from a share of £4million to set
up their own anti-fraud initiatives – including special hotlines
and crack squads to investigate allegations of fraud.
Mr Healey has today handed over to councils and housing
associations around 8,000 thousand leads to follow to potential
tenancy cheats in their communities, found through data sweeps by
the Audit Commission matching tenancy records against records held
by councils, housing associations and other public bodies.
Public tip-offs are vital to tackling the fraudsters – half of
all homes recovered from cheats are done so after tip-offs from
neighbours. So he is offering a reward/bounty of £500 to anyone
whose information leads to the recovery of one of the first 1,000 homes.
The average cost of recovering a property from a tenancy cheat
can be as little as £3,000 – while the total cost of building a
new council or housing association home can reach well over £100,000.
This anti-fraud drive to recover homes comes on top of the
largest council house-building programme for nearly two decades
and new guidance for councils to manage their waiting lists
according to local priorities.
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."
Councils and housing associations are also being given practical
advice on how best to tackle housing fraud, as well as access to
posters and leaflets that they can adapt to meet their needs, to
encourage people in their area to come forward with any
information they may have on local fraudsters.
Sarah Webb, chief executive at the Chartered Institute of
Housing, 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.
"CIH believes that making the best use of existing
housing is essential and I am delighted that we have been asked to
write this guidance which provides landlords and local authorities
with good practice and legal advice to support them to clamp down
on these unlawful practices."
David Orr, chief executive of the National Housing Federation,
said:
"Tackling unlawful subletting is an
important part of housing associations' commitment to
supporting those in housing need. Every home which is freed up
through this initiative is another home available to a family who
genuinely need it.
"Through effective
partnership working between associations and local authorities,
this initiative can deliver significant benefits to those who need
affordable, secure homes."
Notes to Editors
1. Tackling unlawful subletting and occupancy:Good practice
guidance for social landlords is published today and can be
viewed at: www.communities.gov.uk/publications/housing/housingfraudguidance
2. The 147 councils signed up to today’s initiative will benefit
from a share of £4million. The breakdown by council is as follows:
www.communities.gov.uk/documents/housing/doc/regionfraudfunding
3. John Healey has today handed over 8,000 leads for councils and
housing associations to follow.
4. Examples of action councils and housing associations have
taken to recover properties fraudulently acquired or sublet
include:
Southwark Council: Following the success of
the council’s Special Investigation Team in recovering homes from
unlawful subletting, it was decided to undertake a pilot with the
local housing association, Family Mosaic, to extend their approach
further. Of the 300 properties visited over three months, 253 were
found to be occupied by the legal tenant; 14 cases of unauthorised
occupation were identified – of which 12 were recovered; and
investigations were continuing on 33 properties – with 26 final
warning letters and eleven Notices to Quit having been served.
Welwyn Hatfield Borough Council and Welwyn
Hatfield Community Housing Trust: Welwyn Hatfield have
combined the annual gas servicing and safety visit with the
collection of household information for every tenant. Information
collected by their heating contractor during their routine checks
is compared to existing tenancy records and any discrepancies are
investigated further.
Gentoo Sunderland: Tenancy and Estate
Officers from Gentoo Sunderland undertake a rolling programme of
tenancy audits and property inspections over a two-year period.
Visits are conducted with weekly quotas set for each officer. As
part of the visit, tenant and household details are gathered and
updated in order to shape future service provision.
Contacts:
Communities and Local Government Out of hours 020 7944
5945
Phone: 020 7944 4400
press.office@communities.gsi.gov.uk