Thousands Of Council Tenants Committing Fraud By Sub-Letting Property: Report

Council Tenants

First Posted: 12/09/11 10:49 BST Updated: 11/11/11 10:12 GMT   PA

PRESS ASSOCIATION -- Thousands of people in social housing are committing fraud by sub-letting their property, research has suggested.

Information services company Experian examined data covering 125,000 properties run by 10 local councils and housing associations to try to detect potential fraud.

It looked at tenancy lists, and then compared the registered tenant's credit activity and which address it was associated with.

The researchers also examined credit activity by other adults who were using the council or housing association property as their address.

They extrapolated the figures to estimate that 157,077 homes were being fraudulently sub-let in the UK.

The properties could potentially be vacated and used for people in temporary accommodation, which costs around £18,000 per year per tenant according to Experian, or those who are on housing waiting lists.

The Audit Commission estimates that up to 50,000 social housing properties are occupied illegally.

Nick Mothershaw, Experian's director of fraud and identity solutions, said: "Our initial research suggests that the level of social housing tenancy fraud in Britain could be much higher than previously estimated. Reducing social housing tenancy fraud will significantly reduce the cost of temporary accommodation."

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PRESS ASSOCIATION -- Thousands of people in social housing are committing fraud by sub-letting their property, research has suggested. Information services company Experian examined data coverin...
PRESS ASSOCIATION -- Thousands of people in social housing are committing fraud by sub-letting their property, research has suggested. Information services company Experian examined data coverin...
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HUFFPOST SUPER USER
floodberg
Attorney (ret.)
06:55 PM on 09/12/2011
Wow, what a surprise!

Council tenants retaining property as they reach higher income levels (instead of buying them), buying overseas property and taking the tax breaks for that, taking jobs abroad and letting others live in them, councils 'forgetting' to rent them or to collect rents, migrant preference as they're new in country and have no place to go, increased migration and therefore increased demand and overcrowding, landlords 'renting' their properties as council houses in premiere areas for top rent...

Wait, how do I tell the legal profiteers from the Criminals?
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ddanimal
06:30 PM on 09/12/2011
This sounds like a hit piece to me. If one has a credit card statement-or any other financial statement- delivered to a different address, then you are "committing fraud".

This is nonsense because there are a lot of reasons why one could have financial statements delivered elsewhere (e.g. a more permanent address, an old address, or the like).

This is not evidence of fraud. Its evidence that tenants in these housing units didnt update their address with their bank, credit card company, or other business.
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sillyfrog
Pastafarian and UU student
11:14 PM on 09/12/2011
Dream on.
05:05 PM on 09/12/2011
Isn't that what government does?
Soft loans (or rents) to banks (or council tenants) so that their mates can make a profit?
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Lawyer13
retired Lawyer, General and Psychiatric Nurse, wit
11:26 AM on 09/12/2011
This has been going on for at least thirty years to my knowledge, and I think much longer than that, so what's new.
12:01 PM on 09/12/2011
When Southwark Council (which includes Peckham) carried out a survey (mid-nineties) of their then more than 65,0000 dwellings, they found certain streets had had no rent collected for ten years or more, including several streets almost entirely squatted in the Walworth Road area. A friend working for the Council Housing Department (!), discovered one of the then vacant properties and took it over for his own use, living rent-free for three years.

After the murder of the child, Damilolah Taylor in late 2000, Southwark Council obtained massive funds to demolish the north Peckham Estate and replace it with better housing.

There was in fact very little wrong with the North Peckham estate housing. It was the people living illegally in the houses that were the problem. Friends living on the estate described to me in great detail how the sub-letting scams were operated. At least half of dwellings on North Peckham Estate were illegally occupied. Gangs of criminals operated sales of keys and rent collection, use of addresses for housing benefit etc. Middle level drug-dealing (to small dealers only) and moving around of illegal immigrants were core business activities.

These events were known to officers of the council. Rather than address them, they knocked down the whole estate!

Those who want social housing, have to come up with some ideas about how this mass illegality can be avoided. Left-run councils have ignored it for decades.
03:01 PM on 09/12/2011
So have the right, I rented one myself from a single woman during the eighties, Maggie was boss at the time, it happens mostly in London as theres plenty hovels to rent elswhere after the right sold off the most sought after leaving the duff estates for the "feral underclass" no-one in their right mind would choose life on some of these, then again, some of us are left with little choice as neither "right" nor "left" have supported social housing for 30 years. I do like the soundbite, "affordable housing" but its just not practical when the local jobs pay 10000 a year.