David Kidney Crack Down on Social Housing Fraud

Crack Down on Social Housing Fraud

Launch of first ever national crackdown on social housing fraud

30 November 2009

Housing Minister John Healey has launched the first-ever national crackdown on tenancy cheats who fraudulently sub-let social housing, taking homes away from families in real need. Stafford’s Labour MP David Kidney welcomes this further action to protect what he calls “this national asset”, the rented and shared ownership housing provided by councils and housing associations:

Institute of Housing article

“I am pleased that John Healey has launched this national crackdown on those who fraudulently sub-let social housing, cheating families who are in real need of a home. Allied to support for those struggling to pay their mortgages and the largest council house building programme for nearly two decades, this anti-fraud drive is proof that our Labour government continues to take action in the interests of both the public good and the public purse.

“Almost 150 councils have signed up to the crackdown, including every London council and every top-tier Labour council responsible for its own housing stock. Stoke on Trent City Council has signed up and in our County Staffordshire Moorlands and Tamworth Councils.

good practice guide for social landlords

“Working alongside housing associations, councils will get a share of £4million government funding to ramp up their own anti-fraud initiatives. Through hotlines and investigation teams, the aim is to rapidly recover up to 10,000 council and housing association homes that are currently illegally sub-let.

“The Audit Commission has told us that the ratio of social housing homes unlawfully acquired or sub-let ranges from 1 in 100 to 1 in 20 in some inner-city areas. Tenancy cheats live elsewhere and can get thousands of pounds a year by unlawfully subletting their properties at higher rental rates. If caught as part of the crackdown, they will lose their tenancy and could lose their right to social housing in future.

“Labour's action delivering homes for people is in stark contrast to Tory proposals to slash spending on affordable housing. Conservative-controlled Hammersmith and Fulham council discusses “how it is hard to get rid of people” from their council homes, while at the same time the national Leaders of the Conservative Party are proposing a £200,00 tax cut to the 3,000 wealthiest families in Britain. Such a stark contrast in priorities illustrates that the only estates the Tories care about are their own landed ones.”

Councils and housing associations are given practical advice on how best to tackle fraud and posters and leaflets that they can adapt to encourage people in their area to come forward with information on local fraudsters. Past local crackdowns have shown that public involvement is vital, with tip-offs from neighbours responsible for the recovery of half of the homes recovered from cheats. A reward of £500 will be made to anyone whose information leads to the recovery of one of the first 1,000 homes.